Self employed?

switching

I've been given the opportunity to do some psychometric tests and be paid for them. It would be a one off thing, and I wouldn't be earning massive amounts of money. If I want to do it, do I need to register as self employed? Things I've read on this website suggest I do, but I struggled to find anything relevant on the HMRC website, or indeed even a relevant number to ring to ask! If it matters, I don't earn over the income tax threshold, and the amount I would make from doing this certainly wouldn't take me over. If I do need to register as self employed, what will this actually involve? I would like to do these tests, but if it's going to be a lot of hassle I probably won't bother. Also, would it make any difference if instead of being paid in money I was given vouchers?

Little_Miss_Uni-Debt

I guess it all depends how much you earn from it and how often you will do it.

You can simply register as self employed with HMRC and then get a low earning exemption certificate which means you don't have to pay NIC's else you will get a bill for £30ish every quarter.

You'll also have to fill in a tax return at the end of the year, just saying how much you earned over all etc.

switching

Thanks. So do I have to register as self employed regardless of how much I will be earning?

Little_Miss_Uni-Debt

Yes. The official and above-board route says that all earnings should be declared, if it through an employer tax and NI is taken automatically if through self employment then through self assessment at the end of the tax year.

Folks that sell on ebay, work cash in hand, buy to sell at car boots etc should also declare their earnings but I'm pretty sure most don't.

jadex

switching wrote: »

If it matters, I don't earn over the income tax threshold, and the amount I would make from doing this certainly wouldn't take me over.

any amount you make will affect your benefits though (if you get any)
so you may need to consider that aspect as well

stardust09

Can you ring your local tax office and find out? I know there's also a box on the self-assessment tax return that you can use for one-off earnings, which might be less hassle than self-employment but you'd need to check that it was relevant to you.

The HMRC would count vouchers as income as they are payment for services.

If your local tax office can't help, they should be able to give you the number that can.