if someone pays occasional cheque into bank will HMRC know?

purpleroad

Got a friend who is PAYEE and they pay his taxes. On side he does gardening and wot not and usually they pay cash, the other week they paid by cheque. As he isn't registered for tax he didn't know whether to pay the cheque or not. Would HMRC spot the occasional cheque or bank transfer once every 6 months- a year that he has into his bank accounts? he has three accounts and different banks. I heard they rarely look into someone who is already paying tax PAYEE. If in the future he decided that this job would be his main job and registered would HMRC go back and check all his accounts for the months/years before analysize all the money going in and out previous to him registering?


How much hassle is it to register for second job for £100-£150 a year? I mean to fill in forms etc Also, if you lost main PAYEE job and needed to sign on but were registered as self-employed even for that piddly amount would that affect being eligible to claim JSA?

le_loup

This is not a website to encourage tax evasion or to give hints on how to do it.

sheramber

He can phone HMRC and advise he is in receipt of self employed income of £x amount a year. If the amount is small it can be taken into his code number and he will pay the extra due through his wages.

If he was signing on he would need to answer any questions truthfully, including details of all income he receives.

agrinnall

purpleroad wrote: »

How much hassle is it to register for second job for £100-£150 a year?

Is this amount the value of a couple of cheques a year? If so then his income from this side job is many times that as the other payments are cash, and he's almost certainly evading tax of hundreds of pounds a year. If it's the total for the whole year cash and cheques then he should think about increasing his rates as £2-3 a week is probably not even worth travelling to the job.

PS By the way, the acronym you are looking for is PAYE.

purpleroad

agrinnall wrote: »

Is this amount the value of a couple of cheques a year? If so then his income from this side job is many times that as the other payments are cash, and he's almost certainly evading tax of hundreds of pounds a year. If it's the total for the whole year cash and cheques then he should think about increasing his rates as £2-3 a week is probably not even worth travelling to the job.

PS By the way, the acronym you are looking for is PAYE.

if he earns £100 a year. And 2x £50 cheques/bank transfer- technically this is tax fraud. But it's a lot of hassle to submit a tax return for such a small amount. What should he do? Someone said call HMRC and have it included with his PAYE tax payments.

booksurr

purpleroad wrote: »

if he earns £100 a year. And 2x £50 cheques/bank transfer- technically this is tax fraud. But it's a lot of hassle to submit a tax return for such a small amount. What should he do?

so he is happy to be paid for his work, but does not want to declare it for tax purposes because "it's too much hassle"

why are you repeating yourself when you have been given the answer as above from sheramber.....

sheramber wrote: »

He can phone HMRC and advise he is in receipt of self employed income of £x amount a year. If the amount is small it can be taken into his code number and he will pay the extra due through his wages.

If he was signing on he would need to answer any questions truthfully, including details of all income he receives.

he may not need to complete a full blown tax return if HMRC can simply collect what is due via adjusting his tax code. They are under some pressure to reduce the number of people on tax returns where there is no serious need for such people to have all that "hassle" so where possible they will not always put you on tax returns

purpleroad

Would declaring this small amount complicate getting JSA if he lost his PAYE job?


Which department would you ask at HMRC about all this?

le_loup

I wonder - from your previous posts if YOU are the friend?
However get your "friend" looks up HMR&C on the interweb thingy and he will find a telephone number for enquiries.

densol_2

purpleroad wrote: »

if he earns £100 a year. And 2x £50 cheques/bank transfer- technically this is tax fraud. But it's a lot of hassle to submit a tax return for such a small amount. What should he do? Someone said call HMRC and have it included with his PAYE tax payments.

No he doesnt earn £100 a year ! He gets MOST of the money in cash as you said above. The £100 just reflects the cheque aspect..... Jeez

hoc

Call HMRC and ask. You (sorry, "your friend") can't decide what is de minimis. Tax evasion is a criminal offense regardless of the amount and "too much hassle" would not be an accepted as a defense.

Cook_County

hoc wrote: »

Call HMRC and ask. You (sorry, "your friend") can't decide what is de minimis. Tax evasion is a criminal offense regardless of the amount and "too much hassle" would not be an accepted as a defense.

This is not true (soon) as the government announced a new "sharing economy" allowance. If all the income came from (say) Taskrabbit it would tax free (from next year) provided it was below the allowance.