Second job Income.

villa2010

Hi fantastic peoples...!

A friend wanted some advice. Basically they have a second job there income is not that much extra its only about £1000 per year as part of a .

How likley is it that the tax man will double check this and what would be the likelt consequence for not declaring it?


I advised her to declare it but I just thought I would check with everybody else.

Hope I have posted in the right place>

[Deleted User]

the tax on this would be around £200,far better than being caught out

skintandscared_2

Depends what the first job's income is. If it's more than £1k less than the minimum threshold for paying tax it makes no difference. If it's less than £1k shy of a different tax bracket, it makes a lot of difference. Either way it should be declared.

villa2010

Thats what I said to her.

Is the tax roughly around 28% for a second income - why is it so high?

[Deleted User]

assuming she already works full time and uses her tax allowance in full,and doesnt pay higher rate tax then the second income will attract tax at 20% on the full amount,this used to be and probably still is done using the tax coding system i.e they would reduce the tax code by the amount of the second income in this case £1000 a year,so a tax allowance of £7600 would become £6600 tax code reduced from 760 to 660

jem16

villa2010 wrote: »

Thats what I said to her.

Is the tax roughly around 28% for a second income - why is it so high?

Tax on a 2nd income is charged exactly the same as a first income - ie 0%, 20% or 40% or 50%.

What makes the difference is that there is usually no personal allowance attached to 2nd incomes as it's usually attached to your first/main income. It's your total income that matters for tax and it doesn't matter whether you have one job or six.

villa2010

what would be the probable consequence.

MrsManda

villa2010 wrote: »

what would be the probable consequence.

Of not declaring the income and getting caught?

A criminal conviction for tax evasion
with a fine
and potential prison sentence.

It'd be much better to just pay the tax. She can ask the HMRC to split her personal allowance if she's not going to earn the full amount in her main job.
http://www.hmrc.gov.uk/incometax/starting-work.htm#3

Notmyrealname

villa2010 wrote: »

what would be the probable consequence.

An immediate fine, interest on the amount owed and prison ultimately.

Also if she is getting tax credits, housing benefit, council tax benefit and doesn't declare it to them then it is benefit fraud as well.....

HappyMJ

villa2010 wrote: »

what would be the probable consequence.

The probable consequence will be a small penalty plus interest. You won't get a fine unless you go to court and are prosecuted which is very unlikely.

[Deleted User]

if they changed their name to phil green and had the income paid into a monaco bank account the consequences would be NIL NOTHING NARDA ZILCH
the mega rich get away with it as we all know