does she have to declare to tax man?

daffodil

Hi
My daughter was made redundant recently and is not able to claim JSA because her former employer paid her 2 months salary on leaving, so she has no income. To give her a bit to spend she is earning a very small amount eg £60 per month from her hobby - does she have to tell the Inland Revenue about this even though she is no way earning enough to pay tax on?
Many thanks in anticipation

andrina_nightshade

I would say yes. Even if it's well below the tax threshold, she should still declare it. Better to be safe than sorry.

Valli

and bear in mind that it's almost the end of the tax year so I presume she will have earned over her tax allowance anyway.
eg

Income from job (since April 2008) + income from hobby
less tax allowance
Tax payable on the rest!

PRINCESSX87

Valli wrote: »

and bear in mind that it's almost the end of the tax year so I presume she will have earned over her tax allowance anyway.
eg

Income from job (since April 2008) + income from hobby
less tax allowance
Tax payable on the rest!

Hi there i was in the same boat a few weeks back and its better for her to tell them.

Even though its under the tax fresh-hold, they could say she is self-employed!

Doubt it, but they may.

All i done was called them early evening, any other time and they are really busy!
Told them the work i was doing, and the wage, and the hours.

I got told i was not making enough, and to just call back if i started to make more!

Hope this helps:-

p.s:- Please call just to cover her!

Becles

Even if you only earn £1 per year, you still have to ring up and declare it to the tax man.

Have a look on www.hmrc.gov.uk under the self employment pages and it will explain how to register etc.

soolin

Please do not mistake the requirement to pay tax and the need to register as earning money from self employment. It is completely immaterial whether a tax liability occurs due to being self employed however within 3 months of starting to trade you must declare it.

There is an itneresting thread here:

http://forums.moneysavingexpert.com/showthread.html?t=1565599

daffodil

All of that is brilliant advice!!- I will get her to do it - like it was said "its better to be safe than sorry"
many thanks

Scaredy_Cat_3

PRINCESSX87 wrote: »

Hi there i was in the same boat a few weeks back and its better for her to tell them.

Even though its under the tax fresh-hold, they could say she is self-employed!

Doubt it, but they may.

All i done was called them early evening, any other time and they are really busy!
Told them the work i was doing, and the wage, and the hours.

I got told i was not making enough, and to just call back if i started to make more!

Hope this helps:-

p.s:- Please call just to cover her!

I'm puzzled about this - are they saying you don't need to do a tax return? Don't mean to pry but can you give any hint of the amounts you were earning and the regularity of the income, so I can try to work out how this might apply to me?

I have recently registered as self employed but only earn around £100 per month (after expenses) so there is no way I will earn enough to pay tax, but as far as I know I still have to complete a tax return.

soolin

Scaredy_Cat wrote: »

I'm puzzled about this - are they saying you don't need to do a tax return? Don't mean to pry but can you give any hint of the amounts you were earning and the regularity of the income, so I can try to work out how this might apply to me?

I have recently registered as self employed but only earn around £100 per month (after expenses) so there is no way I will earn enough to pay tax, but as far as I know I still have to complete a tax return.

I suspect that is a misunderstanding as they can't tell you not to declare income , regardless of how small it is it must be declared. Obviously if all your income is still below the tax allowances that you have available there will be no tax to pay.

PRINCESSX87

Scaredy_Cat wrote: »

I'm puzzled about this - are they saying you don't need to do a tax return? Don't mean to pry but can you give any hint of the amounts you were earning and the regularity of the income, so I can try to work out how this might apply to me?

I have recently registered as self employed but only earn around £100 per month (after expenses) so there is no way I will earn enough to pay tax, but as far as I know I still have to complete a tax return.

Nope thats what i asked:-

When i was working i was making around the £150 a month depending on hours.

When i called they simply said to me, that even if i was to make £350 a mth, then they still could not tax me as after i take out expenses i would not be left with enough. i was confused too as when i was working and just turned 18 they was wacking me for any left over spends.....

I think it also might have something to do with the job you do too, as when i told them what i was doing they done the maths??

After every job i do, i call the tax office just to clear myself.