Declaring tax from a second (cash in hand) job

Dave85

Since Autumn 2008 I've earnt almost £2000 as a second-job, cash in hand. I haven't declared anything...yet.

I'm not expecting to earn any more after today, so could I declare it with a one-off payment to HRMC without changing my tax code?
Would the person who paid me be informed by HRMC? Would my main employer be informed?
What sort of % would I be taxed? My main tax code is 603L

Cheers!
Dave

McKneff

If you are going to declare it you would have to fill in a tax return at the end of the tax year. You would pay 20% tax on it. You would probably have to pay NI contributions on it also.

You would have to say where it was earned from I'm afraid.
If the person who paid you has not declared it on his books he has committed fraud by not paying the tax due, not paying NI to the government and any number of other things. You wouldnt have been insured either etc etc.

-BA-

You an MP? You didn't employ yourself to clean your own home did you?

Seriously though, I would suggest contacting your local tax office if you are looking to keep things legit. By "cash in hand" were you taken on self-employed? If not then the company have some questions to answer because they have a responsibility to deduct your taxes at source.

LittleVoice

McKneff wrote: »

If you are going to declare it you would have to fill in a tax return at the end of the tax year. You would pay 20% tax on it. You would probably have to pay NI contributions on it also.

You would have to say where it was earned from I'm afraid.
If the person who paid you has not declared it on his books he has committed fraud by not paying the tax due, not paying NI to the government and any number of other things. You wouldnt have been insured either etc etc.

Only applicable if the OP was actually an employee rather than self-employed.

McKneff

LittleVoice wrote: »

Only applicable if the OP was actually an employee rather than self-employed.

i think it quite obvious from what the OP says that he was not either.
If he was an employee he would be paying tax (a full 20% as he has a main employment)and NI. If he was self employed he would have to have a certificate (i think a CIS)
Isnt that what cash in hand means, under the table so to speak unless of course youre going to declaire it.

paulwf

If you decide you were self employed you may get fined £100 for not registering within 3 months - basically decide what way you want to do it before giving HMRC too many details

fengirl_2

Its not up to the OP to decide whether he was self employed or not - that responsibility rests with the employer and if the employer gets it wrong, then he is liable for the tax and NIC.
Dave, what work were you doing 'cash in hand'?

Mudd14

Cash in hand hmmmm. The morale thing to do is to declare it on a self assesement. However, its cash in hand.........

bdon

cash in hand is of course illegal

you should bill your services and post your invoices to your accountant

LittleVoice

McKneff wrote: »

i think it quite obvious from what the OP says that he was not either.
If he was an employee he would be paying tax (a full 20% as he has a main employment)and NI. If he was self employed he would have to have a certificate (i think a CIS)
Isnt that what cash in hand means, under the table so to speak unless of course youre going to declaire it.[/QUOTE]

I'm not sure I understand what you are saying here.

Do you think it means he was neither employed nor self-employed?

Your earlier post wrote of the person who paid the OP as not paying tax nor NI - that implies an employer/employee relationship.

If the OP was actually self-employed in their work (we don't know because we have no information about what gave rise to the payments), then there is no question of the person who paid having to pay tax or NI in relation to the OP.

McKneff

Do you think it means he was neither employed nor self-employed?

that was my understanding. Where i come from 'cash in hand' means not declaring it to anyone. I can only go on my own perceptions (different from presumptions) from somebodys post.

Consider this.

I have not declared it to the taxman yet.
and
I have not declared it to the taxman.......yet.

Different perception - yes?