Did some private work. Do I pay tax?
Discussion
Asking for a friend.
Works as a receptionist in a GP surgery. Salary is 22k before tax.
Tax code is 1250L.
She did some work for a private consultant as his PA was off sick. He requested an invoice. She invoiced £150. She said the work was a one off and doesn’t intend to make a business out of it.
My limited understanding is that she has to declare it regardless and register for self-assessment. She is worried she will get into trouble with the tax man.
I am not qualified to give her advice as I only have one job myself.
Works as a receptionist in a GP surgery. Salary is 22k before tax.
Tax code is 1250L.
She did some work for a private consultant as his PA was off sick. He requested an invoice. She invoiced £150. She said the work was a one off and doesn’t intend to make a business out of it.
My limited understanding is that she has to declare it regardless and register for self-assessment. She is worried she will get into trouble with the tax man.
I am not qualified to give her advice as I only have one job myself.
If it's genuinely a one-off this year, then no.
HMRC do not require you to submit an SA or tell them about any non-PAYE income if it's less than £1000. See link below.
https://www.gov.uk/guidance/tax-free-allowances-on...
HMRC do not require you to submit an SA or tell them about any non-PAYE income if it's less than £1000. See link below.
https://www.gov.uk/guidance/tax-free-allowances-on...
If that was her only "self employed" type income then it's unlikley she needs to declare it or fill out a Self Assessment submission. Follow this checklist to see what HMRC say:
https://www.gov.uk/check-if-you-need-tax-return
Basically if you earn less than £1000 a year HMRC don't want to know.
https://www.gov.uk/check-if-you-need-tax-return
Basically if you earn less than £1000 a year HMRC don't want to know.
Simpo Two said:
It's interesting because if her employer gave her a pay rise of £1K then she'd pay tax on it, but if she gets it from somewhere else she doesn't...
Presumably because she'll be earning more than £1,000 pa, and be on PAYE?Edited by Mandat on Thursday 13th February 22:59
Jumping in here, my better half had earned about £1500 in side projects this year, but has spent about 500 on equipment.
Does she need to declare it in her SA based on the gross amount, or not because of the expenses (all specifically tied to the work).
She has to do a SA anyway, but the HMRC guidance doesn't specify this as far as I can tell.
thx
Does she need to declare it in her SA based on the gross amount, or not because of the expenses (all specifically tied to the work).
She has to do a SA anyway, but the HMRC guidance doesn't specify this as far as I can tell.
thx
Simpo Two said:
It's interesting because if her employer gave her a pay rise of £1K then she'd pay tax on it, but if she gets it from somewhere else she doesn't...
I assume they pegged a grand as a reasonable point at which it wasn't worth the effort sorting out the tax etc for a new income stream, whereas with an extra grand under PAYE, it's already all set up and easily processed.Simpo Two said:
It's interesting because if her employer gave her a pay rise of £1K then she'd pay tax on it, but if she gets it from somewhere else she doesn't...
It's in line with the other "special allowances" that were introduced for specific income sources a few years ago. For example, a person can have £1,000 worth of bank interest and not pay any tax on it - no matter what their other taxable income levels are.Also, the first £2,000 of dividend income is tax free.
sociopath said:
Jumping in here, my better half had earned about £1500 in side projects this year, but has spent about 500 on equipment.
Does she need to declare it in her SA based on the gross amount, or not because of the expenses (all specifically tied to the work).
She has to do a SA anyway, but the HMRC guidance doesn't specify this as far as I can tell.
thx
If she is already completing an SA return, then I WOULD return the self employed income in that situation. She is entitled to 100% Annual Investment Allowance on equipment purchased so, depending on whether the allowance claim takes her below the £1,000 or not, she may have a tax liability arising on her self employed income.Does she need to declare it in her SA based on the gross amount, or not because of the expenses (all specifically tied to the work).
She has to do a SA anyway, but the HMRC guidance doesn't specify this as far as I can tell.
thx
Eric Mc said:
If she is already completing an SA return, then I WOULD return the self employed income in that situation. She is entitled to 100% Annual Investment Allowance on equipment purchased so, depending on whether the allowance claim takes her below the £1,000 or not, she may have a tax liability arising on her self employed income.
The £1,000 allowance would be a more beneficial claim - she would still be liable to tax on the £500 excess, but that's better than £1,500 - £500 - £1,000.Gassing Station | Business | Top of Page | What's New | My Stuff