do we need to declare odd job money?

quintwins

my hubby sometimes does sme serve, netwook or website work in his spare time, usually around £600-£1k worth a year, this take year will be just over £2k we've always declared this to tax credits, but should he be paying tax on this income? and how do we go about this, he earns £12000 in his day job. i did google it but theres so much info about tax i could find it.

le_loup

Well of course he must.
Phone up the tax people and they may allow a verbal declaration; if not, they will send a form for completion.

Sambucus_Nigra

quintwins wrote: »

my hubby sometimes does sme serve, netwook or website work in his spare time, usually around £600-£1k worth a year, this take year will be just over £2k we've always declared this to tax credits, but should he be paying tax on this income? and how do we go about this, he earns £12000 in his day job. i did google it but theres so much info about tax i could find it.

Was there any information that said he doesn't need to declare it? If so, where exactly is that?

Murdina

He certainly needs to pay tax on it.

The question is is it so little and so lacking in organisation he can just ring up HMRC and ask them to take account of it in his tax code each year or show it in a box in the main body of a self assessment tax return ( there is a box but I cannot be bothered to look it up for now!) OR does he register as self-employed, sort out his NI (you register then claim the small earnings exception) and get drawn into self assessment if he is not in it already.

If you look on HMRC website there is guidance on things like ebay selling which give general pointers as to what is a "trade". The more he is actively seeking out this work and advertising it and the longer it recurs for then the more I would say he is trading.

If you want to be on the safe side register as self employed and take the extra admin.

It is also v likely the info will get passed on by TCO at some point.

quintwins

we never considered it before, prob very naive of us, no there was no info saying he didn't have i couldn't pin point any info on it, as these are one off jobs that don't come round that often we never considered it

Murdina

Don't worry you can sort it out now and the fact you told tax credits is a good thing.

quintwins

Murdina wrote: »

He certainly needs to pay tax on it.

The question is is it so little and so lacking in organisation he can just ring up HMRC and ask them to take account of it in his tax code each year or show it in a box in the main body of a self assessment tax return ( there is a box but I cannot be bothered to look it up for now!) OR does he register as self-employed, sort out his NI (you register then claim the small earnings exception) and get drawn into self assessment if he is not in it already.

If you look on HMRC website there is guidance on things like ebay selling which give general pointers as to what is a "trade". The more he is actively seeking out this work and advertising it and the longer it recurs for then the more I would say he is trading.

If you want to be on the safe side register as self employed and take the extra admin.

It is also v likely the info will get passed on by TCO at some point.

i don't really understand this bit in bold, maybe because we havent done a tax return before. i'm not sure if he gets enough work to go self employed, he's never went looking for work they get abit threw work that they do in working hours and gets paid to they business rather than him (he works in the family business) and then he gets the odd job in his own time by word of mouth.

quintwins

Murdina wrote: »

Don't worry you can sort it out now and the fact you told tax credits is a good thing.

i don't even know how much he's earned over the years to decalre, last year i'm pretty sure it was nothing, and the year before was maybe £600, if there was tax due we would pay it but i don't know how to firgure out how much

Sambucus_Nigra

quintwins wrote: »

i don't really understand this bit in bold, maybe because we havent done a tax return before. i'm not sure if he gets enough work to go self employed, he's never went looking for work they get abit threw work that they do in working hours and gets paid to they business rather than him (he works in the family business) and then he gets the odd job in his own time by word of mouth.

As soon as he did work for additional income, he should have registered as self employed.

BoGoF

Surely it will be easy enough to find out?

The longer you leave it the more the potential penalties.

quintwins

ok thank you, i will have to dig threw and find out when he got what ect?

is there likely to be any penalties? after all we're coming foward ourselves and willing to pay anything we owe ofcourse.