Paying Tax on a one off payment

_Jimlad_

_Jimlad_

_Jimlad_

Soldato
Joined
5 Jun 2005
Posts
20,890
Location
Southampton
Hello all,

i am not self employed but my retired father and I did a one off job for £3000 and will soon be receiving payment.

My dad is retired and i work full time, i was wondering what is the best way to go about declaring this, never been self employed and always had that managed by my employer.

Off the top of my head i was thinking it would be better for my Dad to declare as he wont hit any tax limits?

Clearly i want to do this all above board.

Any advice please, we have not invoiced them yet.
 
If you want it all above board then just do a self assessment and pay the tax for the extra income.

Does your dad have a pension? It might mess up what he gets if he declares the extra income.
 
_Jimlad_ said:
Hello all,

i am not self employed but my retired father and I did a one off job for £3000 and will soon be receiving payment.

My dad is retired and i work full time, i was wondering what is the best way to go about declaring this, never been self employed and always had that managed by my employer.

Off the top of my head i was thinking it would be better for my Dad to declare as he wont hit any tax limits?

Clearly i want to do this all above board.

Any advice please, we have not invoiced them yet.
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Dont invoice them and do a cash deal :D
 
I am a Nigerian business man, we currently have the perfect opportunity for you to invest £3000. We have an off shore bank account that is totally tax free. If you invest your £3000 today i will be able to offer you a 20% return on your investment within 3 weeks. :)
 
If your dads UK domiciled it won't matter if he's in Portugal it'll still be taxed as UK income, although his personal allowance would cover it if he's not getting anything else here so would effectively be tax free :)
 
If you actually want to pay the tax:

Call HMRC; tell them you earned an extra £3000 this year, on top of your normal salary. They will adjust your tax code so you pay the tax on it over the course of the next tax year. (They will reduce your annual tax-free allowance by £3000).

No need to do a self-assessment. (HMRC avoid self-assessments at all costs, as it costs them money to process them).

You'll probably have to call them again next year to make sure they've adjusted your tax code back again.
 
Engram said:
If you actually want to pay the tax:

Call HMRC; tell them you earned an extra £3000 this year, on top of your normal salary. They will adjust your tax code so you pay the tax on it over the course of the next tax year. (They will reduce your annual tax-free allowance by £3000).

No need to do a self-assessment. (HMRC avoid self-assessments at all costs, as it costs them money to process them).

You'll probably have to call them again next year to make sure they've adjusted your tax code back again.
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This sounds like the sensible idea and more straight fwd
 
Tell them to pay your Dad, it'll be under the threshold and tax free.

Then he gives you a "gift" of £1500.

Sorted.
 
Narj said:
Getting quotes for building work then seeing the extra 20% VAT slapped on top making it unaffordable is often horrifying. No wonder so much building work gets done cash in hand.
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Yeah, VAT is a pretty stupid tax as it encourages so much evasion, and it's so easy to evade.
 
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