UTR question - very small income

orangeslimes

missm29 wrote: »

Also i do the paperwork for my otherhalf and pay myself 100 per wk, 5200 a year, so its tax free, our accountant said to do this rather than my other half earning that money and being taxed, i really do do alot of paperwork though, i have to do myself a monthly payment statement like i do the other subcontractors, but thats it, my accountant says i do not need to do a tax return nor register as self employed. The tax office confirmed this. So now i have really confused you. Why dont you ring the tax office, i've always found them really helpful.

That's because you count as an employee but as your income is under the amount where you have to pay tax or NI. The subcontracting tax thing only applies to contractors in the building trade.

To the op - the £400 needs to be declared to HMRC but I don't think there is any justification for your wife to be asked to give out a UTR.

missm29

orangeslimes wrote: »

That's because you count as an employee but as your income is under the amount where you have to pay tax or NI. The subcontracting tax thing only applies to contractors in the building trade.

To the op - the £400 needs to be declared to HMRC but I don't think there is any justification for your wife to be asked to give out a UTR.

Oh no i'm employed by him? i like to think i'm the boss, i make most of the decisions he just the monkey worker. Sounds like the op wife is not self employed and doesn't need an utr, half the time the people in accounts don't know the right info, contractors we've delt with that have been going years get things wrong.

fengirl_2

If you ring the HMRC helpline, all they will do is tow the party line and say you need to register as self employed. If the OP's wife is just receiving one-off fess for a course, she does not need to register as self employed, as I have said above. She just needs to enter the fee income on the self assessment which she should request at the end of the year.
Anyone who has small fees like this and no other incoem does not make a return at all.
The LA are therefore showing a complete lack of tax knowledge by requiring a UTR. As I have said above, a UTR does not prove you are self employed and it is private to you. The LA has to take the view as to whether this is a self employed position or not and operate PAYE or not as they decide. the status of the worker is not relevent.