Tax Advice

tillson

My wife, who works part time and pays tax with her job in local government has just started taking on some freelance consultancy type work. He first contract will be in the region of £3000. We don't know if there will be anymore work to follow or if there is, how much more work.

How does she declare this for the purposes of Tax and NI contributions?

MXW

tillson wrote: »

My wife, who works part time and pays tax with her job in local government has just started taking on some freelance consultancy type work. He first contract will be in the region of £3000. We don't know if there will be anymore work to follow or if there is, how much more work.

How does she declare this for the purposes of Tax and NI contributions?

Yes she does

tillson

Thanks MXW. How does she do this as she has no idea what her annual income w does she do this as she has no idea what her annual income is likely to be.

Does she declare each payment as she receives them or does she total it all up at the end of the year and then inform IR?

Bean_Counter

She would complete a tax return at the end of the year. She would need to register as self-employed with HMRC within three months to avoid penalties.

MXW

tillson wrote: »

Thanks MXW. How does she do this as she has no idea what her annual income w does she do this as she has no idea what her annual income is likely to be.

Does she declare each payment as she receives them or does she total it all up at the end of the year and then inform IR?

If the income was less than £2,500 then she could have an estimate included in her tax code, anything over and above that she would need to complete a tax return as previously advised.