Ad-Hoc cleaning on the side

[S100HP]

The wife has been doing some AirBnB cleaning for the last year (before lockdown). Typically she was doing one or two clean a week, roughly £35 a time. This has been done "cash in hand" but she does provide a self created invoice for the home owner.

During this period, she has also had a part time job, where she is employed. She does 20hrs a week, salary is circa 8k. During "lockdown" she has been furloughed.

She is still furloughed but Air BnB is starting up again now. The homeowner also has a second property which my wife is also going to be cleaning from now on. This means the cleaning income has at least doubled, it seems she'll be doing approx 4 cleans a week, which is the best part of £150 income.

We think it's a bit dodgy doing this cash in hand, as it's a reasonable bit of cash each month and we'd like it to be above board, but we don't really understand the tax implications of this. Can anyone shed some light please?

[moles]

Just declare it on a self assessment isn’t it. First £12k is tax free a year?.

[Saleen836]

moles said:

Just declare it on a self assessment isn’t it. First £12k is tax free a year?.

The above!
Also make sure your wife pays her NI contributions orthere is a big chance she wont be entitled to a state pension (should it still exist when she retires)

[Ham_and_Jam]

As already mentioned, you will need to fill in a self assessment.

Based on what you mentioned, and assuming a full year of income from both sources that totals £15800.

Deduct a standard tax allowance of £12500, and you will pay tax on £3300 (£660 @ 20%) + NI

Make sure you pay it or it will probably catch up with at some point in the future