How to handle cheque for services.

artic99

Hi All,

I just did a bit of work for a company not related to my normal PAYE day job and have been offered a cheque for the services in return for an invoice.

Now I should have thought about this before now, but how on earth do I handle a one off cheque tax wise, do I just inform HMRC of extra income they will be unaware of and let them adjust things? I don't have a company set up and likely won't be in this situation again.

Thanks..

Stevie_Palimo

If you are only talking small money bank it and say nothing as it probably will go by unnoticed, If it is a large amount then maybe worth making a call and advising the tax office.


Ie:- small money under a grand or so and large amount a few grand upwards, I know a guy that pays his tax through Paye and yet banks around an extra £10.000 a year and says nothing, I am not condoning this but he has done it for years now.

I-W

Stevie_Palimo wrote: »

If you are only talking small money bank it and say nothing as it probably will go by unnoticed, If it is a large amount then maybe worth making a call and advising the tax office.


Ie:- small money under a grand or so and large amount a few grand upwards, I know a guy that pays his tax through Paye and yet banks around an extra £10.000 a year and says nothing, I am not condoning this but he has done it for years now.

This is a very bad idea as (in addition to the moral issue) if discovered you could well be fined in access of the amount earned. Suggest you call the tax office directly and discuss with them.

Takeaway_Addict

I-W wrote: »

This is a very bad idea as (in addition to the moral issue) if discovered you could well be fined in access of the amount earned. Suggest you call the tax office directly and discuss with them.

It's hardly going to be likely if it is just a one off, not worth the taxmans time or hassle taking it any further.

Ebe_Scrooge

Takeaway_Addict wrote: »

It's hardly going to be likely if it is just a one off, not worth the taxmans time or hassle taking it any further.

This. Yes, in theory, the tax man could investigate, and if you were found out then you could expect some hefty penalties. For a one-off, the chances of getting caught are slim in the extreme. OK, that's not much consolation if you did happen to be extremely unlucky, but to be honest HMRC have bigger fish to fry.

I-W

Takeaway_Addict wrote: »

It's hardly going to be likely if it is just a one off, not worth the taxmans time or hassle taking it any further.

Maybe unlikely but it can and does occasionally happen, why risk it? The company will have registered it as a payment so could be uncovered if they are investigated. Plus I wouldn't personally advise someone to do something that is illegal and arguably immoral (not paying their fair share of tax).

forgotmyname

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