Offered some side work, having second thoughts R.E. declaring income to HMRC

d_brennen · 19 Feb 2018 at 14:30

Long story short I was asked how much I would charge for doing a job for an aquantence setting up some equipment and software. I normally can't be bothered with such things as I am at a workstation for 8+ hours a day anyway, have a young child and a social life, so quoted high to put them off but they have gone and accepted my price.

I don't expect this to be a repeat thing, at least not for the remainder of the year so will be a one off income. The guy wants me to invoice him and pay via his business account. I am PAYE at my regular emplyment and also PAYE at a second job.

Is the tax man going to shaft me and how would I go about declaring a one off income anyway? Would really rather not make more admin work for myself than I have already as time is always at a premium.

Not trying to dodge tax before anyone jumps on me

Freakbro · 19 Feb 2018 at 14:38

You would need to register for self assessment and I believe if it's just a 'one off income' for a job you could declare that as "other income" on the standard section, rather than need to register for full Self Employment, and just pay the tax on it, which would be 20% or 40% etc depending on your overall income.

On Holiday · 19 Feb 2018 at 14:38

One off? He won't find out

I'd assume it'll just come under Self Assessment but interested to see what others, that no doubt have done this sort of thing before, suggest.

d_brennen · 19 Feb 2018 at 14:55

Freakbro said:
You would need to register for self assessment and I believe if it's just a 'one off income' for a job you could declare that as "other income" on the standard section, rather than need to register for full Self Employment, and just pay the tax on it, which would be 20% or 40% etc depending on your overall income.

Ok, I'm not up to speed on tax etc. When I contracted briefly I had an accountant do all the paperwork. So do the job, fill in a self assessment form post-fact?

Freakbro · 19 Feb 2018 at 15:06

d_brennen said:
Ok, I'm not up to speed on tax etc. When I contracted briefly I had an accountant do all the paperwork. So do the job, fill in a self assessment form post-fact?

Yep, so if you did some contracting previously and had an accountant you should already have an online Govt Gateway Account for self assessments?

You would just use that and fill in the other income section. If it's now, in the 17-18 tax year you would just need to declare it by end of Jan 19

And you would fill in the employment section of course, with your P60 details - which nowadays is usually prepopulated as they have all your info already

d_brennen · 19 Feb 2018 at 15:14

Gov Gateway rings a bell but was yonks ago. I was contracting for an accountancy firm and they did everything for me, the MD literally sat next to me to file the return (was in 2005/6). Have been PAYE since exclusively.

Been doing some reading up and seems like I don't need to rush into doing anything immediately which takes the pressure off a bit I guess.

Thanks for the replies, the thought of having to deal with the HMRC just filled me with dread

Freakbro · 19 Feb 2018 at 15:58

Your best bet would be to give them a ring to see about your old Govt Gateway account then, as if you haven't been using it since 2005/6 it was probably closed else you would have been getting reminders every year.

It would answer a question I had recently as well, and that's do you just reactive a closed account or do you have to register for a new one

And the HMRC aren't too bad - some of them can be quite helpful!

It's just the waiting time to be answered is the killer....

Steeps · 19 Feb 2018 at 17:00

HMRC don't usually chase for small amounts which is why they are trying to make it official there's nothing owed on amounts under £1k

https://www.gov.uk/government/publi...tax-allowance-for-property-and-trading-income

A2Z · 19 Feb 2018 at 22:24

For a one off why would you even bother?

Just make a quick invoice in Word, get paid, done.

m@rty · 21 Feb 2018 at 20:13

A2Z said:
For a one off why would you even bother?

Just make a quick invoice in Word, get paid, done.

This.

dl8860 · 27 Feb 2018 at 09:44

A2Z said:
For a one off why would you even bother?

Just make a quick invoice in Word, get paid, done.

Because tax applies to all income?

mr tommo · 1 Mar 2018 at 22:36

dl8860 said:
Because tax applies to all income?

You seem fun

AHarvey · 2 Mar 2018 at 15:29

How much are we talking about here?

Deleted member 77746 · 19 Mar 2018 at 17:03

Ring HRMC? ask if you need to declare it anywhere as a one off job. If they say yes just do what they ask and then it will be fine.