Income tax on gifts recieved from non-relatives?

mylesdhillon

Hi there,

I am a self employed musician and this is my first year being self employed. Recently I have been speaking / giving talks at a few church meetings and leading a few songs in the worship time. Mainly at friends churches or youth groups etc.

A couple of times some people have given me a 'gift' which I didnt really think I would get. Its only been £50 to £100. Which is pretty much a 'thanks very much for coming' sort of covers travel if its far away.

Anyway, I obviously dont invoice for these things as most of the time its voluntary.

My question is - do I need to pay tax on these gifts - Im assuming I do. Bit I wonder if there is an exemption on gifts of these kinds?


Thanks so much!


Myles

dzug1

They aren't really gifts - they are income, either directly or the equivalent of tips.

Maybe you have expenses to offset them?

HappyMJ

I'd say they are tips..which are declareable but you can then offset the mileage (at 40p/mile) against this income which should hopefully cause no tax to be paid.