i am employed and my employer takes care of my NI and income tax. However i have been picking up a lot of work in my spare time . is there anyway i can declare this extra cash? ideally i would not like to inform my employer so my taxcode at work could remain the same as the extra work is infrequent ,and maybe make contributions in a self employed stylee
tax question??
- Thread starter dingodeano
- Start date
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B
breezer
so you want to tell the taxman you are earning money on the side do you?
which means he will take money off you in tax
hmmmmmmmm
yes every citizen should tell the tax man he / she is earning more money on the side where apicable
which means he will take money off you in tax
hmmmmmmmm
yes every citizen should tell the tax man he / she is earning more money on the side where apicable
Close.
Set up a business as a sole trader.
Invoice your cash customers like a good lad.
Provide them with sequentially numbered cash sales invoices - like a good lad.
keep good records of your cash receipts and cash purchases - like a good lad.
return your end of year sole trader accounts (on top of your PAYE returns) like a good lad.
Prepare to get yourself flensed alive by the resident badboy on the blood-sucking block which is "HM Revenue - C&E", perennially poised and slavering at the jaws for fetid young morsels like your "good lad" self who are only too pleased to cough up their hard-earned cash clean and make their job so much easier.........
Alternatively (if I had any interest in this sort of thing whatsoever that is) I would keep ever such good accounts every year like a good lad, delay presenting them for 18months after the end of my first trading year (as you can) and then every now and again thereafter (every 2 years say) have an inexplicable flood or fire on a biblical level that destroys everything I had lovingly and consciensiously put together on their behalf.
Or C: shut gob say nowt. X
Invoice your cash customers like a good lad.
Provide them with sequentially numbered cash sales invoices - like a good lad.
keep good records of your cash receipts and cash purchases - like a good lad.
return your end of year sole trader accounts (on top of your PAYE returns) like a good lad.
Prepare to get yourself flensed alive by the resident badboy on the blood-sucking block which is "HM Revenue - C&E", perennially poised and slavering at the jaws for fetid young morsels like your "good lad" self who are only too pleased to cough up their hard-earned cash clean and make their job so much easier.........
Alternatively (if I had any interest in this sort of thing whatsoever that is) I would keep ever such good accounts every year like a good lad, delay presenting them for 18months after the end of my first trading year (as you can) and then every now and again thereafter (every 2 years say) have an inexplicable flood or fire on a biblical level that destroys everything I had lovingly and consciensiously put together on their behalf.
Or C: shut gob say nowt. X
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ok ok
your sayin its not worth it then. i just thought it might be better to get bummed by the tax man a little bit at a time rather than run the risk of getting gang raped one day.....
your sayin its not worth it then. i just thought it might be better to get bummed by the tax man a little bit at a time rather than run the risk of getting gang raped one day.....
earning a bit on the side is fine and dandy - until somebody shops ya.
there are jealous folks around.
also, should any of the work you are doing turn out not to be to the customers liking, then they may have a little leverage where bargaining is concerned. the fact that your earnings wish to remain undeclared means having to have cash. this in itself will alert the customer to the fact that you are not declaring.
only a fool would ask for a cheque and wish the earnings to remain secret.
declare a bit using a self assessment tax return.
there are jealous folks around.
also, should any of the work you are doing turn out not to be to the customers liking, then they may have a little leverage where bargaining is concerned. the fact that your earnings wish to remain undeclared means having to have cash. this in itself will alert the customer to the fact that you are not declaring.
only a fool would ask for a cheque and wish the earnings to remain secret.
declare a bit using a self assessment tax return.
and if you notify your tax office that you will be doing some self employed work, and that your financial year will end on (say) 5th April, then they will not have any reason to accuse you of doing undeclared work. All being well they will remember to send you the forms in time for your financial year end.
Ask for the leaflets on deductables such as tools, overalls, ear defenders, gloves, proportion of running expenses for transport, business stationery, part of the cost of your PC and phone, and stuff. I think it is not worth claiming part of the cost of running your house as business expenses, as that means you could have a capital gains tax liability when you sell it.
If you are careful and methodical and don't mind filling in forms it is fairly easy.
BTW if you choose to put some or all or your earnings into your pension fund (paid straight out of your business account,not paid to you as earnings first), that amount will not be subject to tax or NI, because it is not part of your earnings. (if it is paid to you first, then it is subject to NI but not tax). This is a particularly good bargain if your earnings push you into the higher tax bracket,and might enable you to retire early and live in luxury.
Ask for the leaflets on deductables such as tools, overalls, ear defenders, gloves, proportion of running expenses for transport, business stationery, part of the cost of your PC and phone, and stuff. I think it is not worth claiming part of the cost of running your house as business expenses, as that means you could have a capital gains tax liability when you sell it.
If you are careful and methodical and don't mind filling in forms it is fairly easy.
BTW if you choose to put some or all or your earnings into your pension fund (paid straight out of your business account,not paid to you as earnings first), that amount will not be subject to tax or NI, because it is not part of your earnings. (if it is paid to you first, then it is subject to NI but not tax). This is a particularly good bargain if your earnings push you into the higher tax bracket,and might enable you to retire early and live in luxury
.
BTW if you choose to put some or all or your earnings into your pension fund, and might enable you to retire early and live in luxury
Or alternately, work for the government/councils, where you get gold plated pensions.
BTW unless this is changed fairly quickly, the country will go Bankrupt, its unsustainable.
Let know one say, we could not have seen it coming.
If you are making cash on the side (without advertising because that's how the taxman can get you) I'd keep it hush hush.
That's my advice on the matter.
That's my advice on the matter.
They don't tend to worry if you just claim a couple of hundred quid a year for "use of home as office" - that will not affect the capital gains status of your home. There are some examples of what you can claim if you follow the link below.
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47805.htm
That will only happen if the tax man decides to launch criminal proceedings against you for the common law offence of cheating the public revenue, and you end up being the boyfriend of some very bad people in prison.
But the Inland Revenue rarely prosecute. Instead if you are found out they will do you a deal to pay them the evaded tax, plus interest, plus a penalty up to the amount of the evaded tax.
The decision, as they say, is yours. I know the government has given away squillions of pounds to greedy bankers but your taxes also pay for public services you and yours might need to rely on one day.
Phone the Inland Revenue and ask them to send you a tax return each year. You will need to fill out the self-employment pages and the employment pages. It’s pretty straightforward.
AKA those who don't commit fraud and tax evasion. Putting it like that might sound sensationalist, but at the end of the day that is what you're advocating here. Even if it is just the odd hundred quid on the side.
If everyone was honest and paid all the tax owed, we'd (in theory) get better services as more money would be going in.
Pocket it and say nothing.
So you're paying slightly less of a percentage on your income overall? Don't feel guilty about that when a significant number of the largest companies in the country pay - quite legally - no corporation tax whatsoever.
So you're paying slightly less of a percentage on your income overall? Don't feel guilty about that when a significant number of the largest companies in the country pay - quite legally - no corporation tax whatsoever.
I'm in the exact same boat as you Deano.
The problem with my work is it involves issuing certificates and one guy ive started doing a bit of work for needs receipts so would be VERY silly not to register.
Im gonna arrange to go to a local accountant and see if they can give me an idea as to what sort of tax ill be paying.
The problem with my work is it involves issuing certificates and one guy ive started doing a bit of work for needs receipts so would be VERY silly not to register.
Im gonna arrange to go to a local accountant and see if they can give me an idea as to what sort of tax ill be paying.
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