Working over summer as painter/decorator - tax implications?

[FF172]

I basically have the summer to kill before returning to my final year of uni, and am considering working as a self employed painter/decorator/minor builder (Handyman if you will!). It would be for approximately 3 months max, then that would be it for the year. It would be on my own, maybe a mate to help with some big jobs. I have a fair few years experience in this area.

So, regarding tax - what's the best way to go about this? I want to do everything above board..

Any help appreciated!

[B17NNS]

You will have to fill in a self assessment form (or get an accountant to do it for you) and declare your earnings to HMRC.

Keep careful records of everything you spend relating to the business (invoices, receipts etc) and produce invoices for work done (one for the customer and one for your files).

You will no doubt often be paid in cash which you will of course also have to declare and be taxed on

Edited by B17NNS on Friday 19th March 17:32

[maser_spyder]

It's going back a few years, but there used to be a 'student exemption' available for summer jobs, assuming you were on PAYE.

I'm sure Eric will be along shortly to confirm if a similar scheme still exists!

It was a lot simpler than self assessment at year-end.

[FF172]

One of my thoughts about declaring everything though is will HMRC think its slightly fishy if its only 3 months work, ie will they think I'm still working but not claiming? Or is it just a simple fact that I tell them when I'm finished..

[bitwrx]

Student exemption certainly exists for employees. You basically sign a waiver saying you promise not to earn more than the untaxable earnings limit (or whatever it's called) in a tax year. All this means is that your employer doesn't have to make any PAYE deductions from your wages.

Not sure how it works for self-employed students though. Logic would dictate that the same waiver could be signed but your guess is as good as mine.

Qualifications for this advice: I was once a hard-working student.