What next?

Homeagain

I have been asked by a family member to do their housework/cleaning - which I can do. It is only 2 hours a week - 10.00 per hour which is fine for me (I rather like housework). However I work 30 hours a week on quite a small salary and I am not sure what to do about tax etc. Is it still necessary to declare this, I don't want to do the wrong thing? If so, what should I do - just contact the Revenue services and tell them? This amount would not make any difference to the amount I earn per annum - it would still fall into the tax free earnings. Also would it make any difference to my WTC?

Davide123

Yes tell them... Did you watch the syndicate the other day

somethingcorporate

The tax free element would presumably be used up entirely on your main job. You can call HMRC to get them to change your tax code to take account of this additional income. Given it is in effect additional income above your normal salary and assuming your earnings are above the tax free allowance you will pay tax at your highest incremental rate (20% < ~£42k pa).

rochja

This one is actually easy. Ask her not to pay you for the cleaning but rather use her gift allowance for taxation purchases to gift you money - it is only £1k of a £3K allowance + additional allowances for gifts to family. No tax burden on either of you. You will not actually have a contract of employment or be covered by any liability insurance and in fact are just coming to a mutually beneficial arrangement.