Declaring extra money paid by cash

skintscotsman

I do a bit of photogrpahy from time to time for some people and I often get paid cash in hand.

How much can I earn before I have to delcare this?

Over the course of a year I will probably only make in the region of £500 - £800, in fact, probably a LOT less.

Hoddie_2

There is no limit. All money that is 'earned' is taxable. As it's a low amount you may get away with declaring casual earnings with HMRC (they adjust your tax code to collect the tax due), otherwise you may be landed with a £100 'failure to notify' penalty if this has been continuing for three months or more.

If your total income for the year is less than circa £38k, you'd be due to pay 22% tax on this income. Chances are if you never declared it, they wouldn't ever find out about it, but there's always a risk of someone telling them about it (neighbour, disgruntled competitor, etc).

skintscotsman

one person i do the photos for ensures I sign a form to say I received the cash and that I will declare it to HMRC. think i'll give them a bell to find out more.