Declaring tiny second income- low hassle?

theoretica

I would welcome any practical advice for cutting hassle rather than tax.

My main income is on PAYE and I do not get a tax form, a situation I am very happy with. However, in 2008-9 tax year I will have a tiny amount of other income and estimate I will owe about £15 income tax on income to an estate I inherited from (so no expenses I can claim back) and maybe up to £30 on hobby income (giving occasional music lessons etc), though I could probably get together enough receipts to reduce that to zero. I am perfectly willing to pay what I owe, but have low tolerance for record keeping and forms. What will I be letting myself in for?

Thanks!

fengirl_2

HMRC will not be interested unless the additonal tax due from you is more than £100 - it would cost more to collect than the tax take.

wigglebeena

Would it be best for OP to confirm that with them though? (BTW Fengirl thanks again for your help with my tax meltdown, I now have located all relevant info and am well along with checking and finalizing. Well, with the FIRST round of checking, anyway...)


" I am perfectly willing to pay what I owe, but have low tolerance for record keeping and forms. " Amen to that!

kitty1801

I doubt you will need to complete a tax return for this and as it is such a small additional income (less than £2500) then your office will be able to collect any additional tax due through your PAYE source.

I would NEVER suggest not contacting your tax office. All it take is a telephone call and they will adjust your code to collect the extra tax.

theoretica wrote: »

I would welcome any practical advice for cutting hassle rather than tax.

My main income is on PAYE and I do not get a tax form, a situation I am very happy with. However, in 2008-9 tax year I will have a tiny amount of other income and estimate I will owe about £15 income tax on income to an estate I inherited from (so no expenses I can claim back) and maybe up to £30 on hobby income (giving occasional music lessons etc), though I could probably get together enough receipts to reduce that to zero. I am perfectly willing to pay what I owe, but have low tolerance for record keeping and forms. What will I be letting myself in for?

Thanks!

fengirl_2

£100 is the HMRC tolerance for individual tax liabilities - it has been for at least 30 years.

kitty1801

Can you provide a link to this as I cannot seem to find that info anywhere..
I know there is a tolerance for underpayments through the PAYE system where they won't pursue it but they would still need to know the total income to be able to work that out.

fengirl wrote: »

£100 is the HMRC tolerance for individual tax liabilities - it has been for at least 30 years.

theoretica

Thanks everyone- a phone call I can rise to and it sounds like they won't be demanding to see particularly organised records but will take my word for it as it would be more hassle for them than me!