Declaring income

bushers68

Hi all. A quickie. I have invoiced a school for some work I have done for them and they have paid me the money without tax. I need to declare this to HMRC on my tax forms but will not get a P60 as although asked they have just paid the invoice, so I won't have a P60 or any reference numbers. How do I declare this additional income so I pay the correct tax on those additional salaried earnings

Chris

KiKi

You're saying you undertook a piece of self employed work and want to know how to declare it?

If so, you need to register with HMRC online as self employed. You'll then get a reference number to allow you to complete a self assessment form at the end of the tax year (April 5th 2017). You won't get a P60 for the work because it was self-employed work, and you don't need any reference numbers, so you simply declare your employed income and any self employed income (keep your invoice just in case HMRC ask questions) on the self assessment form, and they'll work out the NI and tax you owe.

If you're a basic rate taxpayer, I suggest you keep 30% back to cover the tax and NI bill you'll get. If you're a higher rate taxpayer, keep back 50%.

KiKi

Savvy_Sue

If it was a one-off piece of work you can just phone HMRC to declare the earnings.

bushers68

Thanks Kiki, I fill in a self assessment each year so I thought I could add it to that but couldn't find exactly where. That's great thanks for your time in responding, much appreciated, Chris

bushers68

Thanks Sue, that's great, much appreciated, Chris

Darksparkle

If you already do self assessment then yes you would include it on that.

A P60 is only for the employed. If self employed you'd need to keep the businesses records e.g. The invoice, bank statements to show the funds being paid, details of any expenses incurred etc.

Details here on record keeping - https://www.gov.uk/self-employed-records/overview

ThemeOne

Also you can deduct allowable expenses you incurred in doing the work, if there were any, thus reducing tax payable.

bushers68

Thanks guys. I do also run a small not-for profit business with a colleague which we have an accountant for, I just did this extra work outside of my company on a self employed basis