Paying Tax on Extra Income

Jay1b

Hello

I'm currently in full time employment working in IT. I've also started doing some private website work.

As two extremes, if I were to earn an extra £200 per year from this, then I obviously wouldn't declare it. If I were to earn £50,000 per year from this (still as a side job), then I'd have to. At what point between the two figures would I need to declare it to avoid running into Inland Revenue problems further down the line?

Thanks

Jay

mel19632

There is not a deminins level for income - you must declare it all. If you don't you run the risk of HMRC catching up with you in the future with interest and penalties.

If you are earning less than £5,075 then you can get yourself exempted from paying class 2 NI, but this is only £2.40 a week anyway.

mel19632

also, you will need to tell HMRC that you are self employed within six months of starting or you may be liable for £100 fine.

RayWolfe

Jay1b wrote: »

As two extremes, if I were to earn an extra £200 per year from this, then I obviously wouldn't declare it.

Why not?

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John_Pierpoint

de minimis adj. (dee-minnie-miss) Latin for "of minimum importance" or "trifling." Essentially it refers to something or a difference that is so little, small, minuscule, or tiny that the law does not refer to it and will not consider it. In a million dollar deal, a $10 mistake is de minimis.

Being practical - I think HNRC would regard £10 a year as de minimis, as your notice of coding is only accurate to ten quid.

Numpty_Monkey

dnpuckitt is a spammer:spam:
Reported to abuse

Jay1b

Well Ray, I wouldn't declare it simply because the HNRC are never going to a) find it and b) pursue it. I'd rather keep the money to spend on my children then have the government tax it just so they can then give to people to lazy to find work themselves, as they do with approximately 1/3 of taxes.

Thanks Mel for your input. But do you know at what point the HNRC will start to chase things up? As I say they wouldn't bother with £200 but they would at £50,000 - so there is obviously a point inbetween where you should declare these things.

jem16

Jay1b wrote: »

Thanks Mel for your input. But do you know at what point the HNRC will start to chase things up? As I say they wouldn't bother with £200 but they would at £50,000 - so there is obviously a point inbetween where you should declare these things.

Nobody on here is going to encourage you to break the law by failing to declare any untaxed income.

If you have any untaxed income you should declare it.

Zazen999

Jay1b wrote: »

Well Ray, I wouldn't declare it simply because the HNRC are never going to a) find it and b) pursue it. I'd rather keep the money to spend on my children then have the government tax it just so they can then give to people to lazy to find work themselves, as they do with approximately 1/3 of taxes.

Thanks Mel for your input. But do you know at what point the HNRC will start to chase things up? As I say they wouldn't bother with £200 but they would at £50,000 - so there is obviously a point inbetween where you should declare these things.

No - the point at which you declare that you are self employed is when you do work on a self employed basis.

RayWolfe

Jay1b wrote: »

Well Ray, I wouldn't declare it simply because the HNRC are never going to a) find it and b) pursue it. I'd rather keep the money to spend on my children then have the government tax it

Interesting.
So, you quite like me paying for your children's education and their health care even though you are earning more than me and I declare ALL my income? Meanwhile, you think it OK not to pay some tax on the basis of HMR&C will not find out about it. I bet you were outraged at what MPs were doing with their expenses claims.

kickwhamstunner

Jay1b wrote: »

Well Ray, I wouldn't declare it simply because the HNRC are never going to a) find it

A valid point of view, had you not just admitted on a public forum that your intention was to evade tax.