Babysitting and paying tax / declaring income?

michaelparker

Hi,

my wife has the opportunity to do some babysitting on a regular basis. The income would still be well below the minimum income threshold she can earn without paying tax so presume that is definitely fine?

I am confused though so wanted to check with you kind knowledgable souls, does she still have to declare she is earning any income at all if below the threshold? We dont want to get into any trouble. We receive child benefit and child tax credit if that makes a difference.

thank you.

Mike

Kew2u

Any and all income should be declared. The Tax-man doesn't have a heart, never mind a soul! Having said that, if your talking about an odd hour here and there, well, you have to weigh the risks. Good on your wife for trying to earn a little extra, but the fact you are on benefit...mmm...is it worth risking that? I would suggest you have a word with someone like Citzen Advice to put you in the legal picture. There is nothing wrong in earning a bit extra, it's declaring it thats the issue.

michaelparker

ok thanks I simply meant child benefit that everyone gets by the way we dont claim any kind of job seekers or anything. I work and she stays at home to look after our child.

hotpot1000

she is allowed to earn whatever her tax allowance says before paying tax, this tax year it's usually £7,475.
http://www.hmrc.gov.uk/rates/it.htm

I cant see how a little babysitting would affect your child tax credit as the entitilement is calculated from the household income isnt it?
therefore a little babysitting shouldnt be enough to take you over the threshold to prevent your child tax credit if you're already eligible.

if you look on the avon thread on the up your income board here-lots of ladies say theyve checked whether to register for being self employed for their avon earnings and a lot of them are told- you're not earning enough.