Self employed

OldBeanz

My friend is retired at 63 with a DB pension in place and due to receive £120 as a pension as he was contracted out most of his life. He pays tax on his pension. He also does small jobs for neighbours and they give him the odd tenner for chopping wood or walking the dogs, doggy sitting etc when he is not off fishing.
The total probably comes to no more than £300 pa and he also does invigilating at a school where he is casually employed and taxed on his £1500pa salary through paye.
He is paying no NI as yet but could he consider himself as self employed for the £300 pa or is the amount so trivial that HMG would tell him not to bother? He is nowhere near the 40% threshold.

Savvy_Sue

Remember that he is taxed on his whole income (apart from non-taxable benefits). So add up his pension, his invigilating income, and the odd jobs. Is he paying the right amount of tax? No, he's not, because HMRC don't know about the odd jobs.

He should register.

CLAPTON

OldBeanz wrote: »

My friend is retired at 63 with a DB pension in place and due to receive £120 as a pension as he was contracted out most of his life. He pays tax on his pension. He also does small jobs for neighbours and they give him the odd tenner for chopping wood or walking the dogs, doggy sitting etc when he is not off fishing.
The total probably comes to no more than £300 pa and he also does invigilating at a school where he is casually employed and taxed on his £1500pa salary through paye.
He is paying no NI as yet but could he consider himself as self employed for the £300 pa or is the amount so trivial that HMG would tell him not to bother? He is nowhere near the 40% threshold.

without the facts if impossible to say: but he may be owed tax rebate at the year end

TheCyclingProgrammer

I don't think he needs to be registered as self employed for doing odd jobs but he should inform HMRC about the additional casual income and they can adjust his tax code accordingly.

molerat

Maybe a chance of some class 2s as well

TheCyclingProgrammer

molerat wrote: »

Maybe a chance of some class 2s as well

On £300 of casual income?

Castle

TheCyclingProgrammer wrote: »

On £300 of casual income?

He could pay them voluntarily which would help increase his state pension; if he's short of the 35 years needed.

molerat

TheCyclingProgrammer wrote: »

On £300 of casual income?

Castle wrote: »

He could pay them voluntarily which would help increase his state pension; if he's short of the 35 years needed.

Exactly, OP stated

OldBeanz wrote: »

.......... due to receive £120 as a pension as he was contracted out most of his life.

so a few years short of £155. Class 2s pay back in around 7 months, a one off £145.60 for £231.40 a year for life.

OldBeanz

He is short on his state pension and will probably waken up to the fact when he hits pension age. He just thinks, like TCP says above that it is all trivial so why bother HMG. I was unsure what to advise as while I thought HMG would be interested in some tax that there may be some minimum figure for casual labour.