Tax on 'hobbles'

chriz1

Hi,
I have a full time job with a government company, but during weekends I regularly do some gardening/building work,
It probably sees me earn roughly an extra £300 a month do I need declare this to hmrc and if so how is tax worked out for the second income?

Geoff1963

earn roughly an extra £300 a month do I need declare this to hmrc

Anything you make ( earnings, interest, capital gains ), needs to be declared ; but you can offset some of it against expenses : travel, tools etc.

The income just adds on, as if your employer was paying it to you ; which might mean it is taxed at a higher rate than a full-time gardener.

Geoff1963

You also probably need to check it with your employer. They might let you drink 10 pints on a Saturday night, but complain at you getting paid to serve them. If you haven't yet got their agreement, there is some good advice around, and telling HMRC will make it easier for them to find out.

00ec25

chriz1 wrote: »

Hi,
I have a full time job with a government company, but during weekends I regularly do some gardening/building work,
It probably sees me earn roughly an extra £300 a month do I need declare this to hmrc and if so how is tax worked out for the second income?

from the phrasing you use this extra £300 is presumably not paid to you via a payroll upon which PAYE operates and tax has been deducted from it?

also presumably this second job is in fact you working on a self employed basis?

so yes you must declare all sources of income to HMRC and in addition you must register as self employed. You will then have to pay tax on the profit you make from your self employment, that does not mean you will necessarily pay tax on all £300 you earned, only the profit you earned.

time for some reading:
https://www.gov.uk/undeclared-income

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

http://www.litrg.org.uk/tax-guides/self-employment/working-out-profits-losses-and-capital-allowance/how-do-i-work-out-my

https://www.gov.uk/government/publications/how-to-calculate-your-taxable-profits-hs222-self-assessment-helpsheet

one thing in your favour, with income/profit that low it is unlikely you will have to pay national insurance on it (but you will have to pay income tax)
http://taxaid.org.uk/guides/information/an-introduction-to-income-tax-national-insurance-and-tax-credits/national-insurance/national-insurance-for-the-self-employed

chriz1

Ok that's great thanks everyone

Dorian1958

Geoff1963 is right; I worked for a government agency and my contract of employment required me to make a formal request to undertake additional work on a self employed basis outside of my contracted hours. This was refused on spurious conflict of interest grounds, and I was warned of the consequences of disciplinary action if I went ahead. No problem if you have been given prior permission.