Casual earnings on top of main job

ozaz

Hi,

I'm full-time employed and taxed under PAYE. I'm a basic rate tax payer. In 16-17 tax year I also received a small payment (approx £150) for a single piece of work I did separate from my main job and for a different company. This was not taxed at source.

Should I be declaring this to HMRC or is there some kind of threshold up to which you are allowed to earn income on casual, irregular work before it needs to be taxed?

Before this, I've only ever had income which is taxed via PAYE so not sure what the rules are here.

Thanks

antrobus

ozaz wrote: »

...Should I be declaring this to HMRC or is there some kind of threshold up to which you are allowed to earn income on casual, irregular work before it needs to be taxed?

...

You have a £1,000 trading allowance. No tax is due.

ozaz

antrobus wrote: »

You have a £1,000 trading allowance. No tax is due.

Thanks for responding.

Is this referring to this allowance which seems to have come into effect for 17-18.

I'm actually asking about 16-17. Was there any alternative/similar allowance for 16-17? Thanks

TheCyclingProgrammer

If it was in the 16-17 tax year you should have notified HMRC of this income by last October.

It’s not too late to notify HMRC. I’d be surprised if they asked you to fill a self assessment to collect tax on £150 even though it’s technically past the deadline for collecting the tax through your tax code.

Ring HMRC and tell them you forgot to notify them and they should hopefully adjust your tax code to collect the £30 of tax you owe. You might even be able to offer to just pay it there and then.

ozaz

TheCyclingProgrammer wrote: »

If it was in the 16-17 tax year you should have notified HMRC of this income by last October.

It’s not too late to notify HMRC. I’d be surprised if they asked you to fill a self assessment to collect tax on £150 even though it’s technically past the deadline for collecting the tax through your tax code.

Ring HMRC and tell them you forgot to notify them and they should hopefully adjust your tax code to collect the £30 of tax you owe. You might even be able to offer to just pay it there and then.

I thought the October is only the deadline for paper returns, and online returns can be submitted until 31 January. Is this not correct?

So I take it from your post that there was no casual/secondary income allowance prior to 17-18?

Thanks

TheCyclingProgrammer

ozaz wrote: »

I thought the October is only the deadline for paper returns, and online returns can be submitted until 31 January. Is this not correct?

So I take it from your post that there was no casual/secondary income allowance prior to 17-18?

Thanks

No casual income limit before this tax year, no.

The deadline for notifying HMRC of any untaxed income is 6 months after the end of the relevant tax year, so beginning of October, regardless of whether or not you need to submit a tax return or have your tax code adjusted.

IIRC any self assessment must be submitted by the end of December in order to have tax collected through your tax code.

Like I said for such a small amount you may find HMRC will overlook any penalties for late notification and simply adjust your tax code or let you make a payment on the phone. The only way to know is to ring them and disclose it.

ozaz

Thanks. I never new about this 6 month notification deadline. I only had 31 Oct and 31 Jan dates in my mind. I'll call HMRC tomorrow and see what they say.

jimmo

TheCyclingProgrammer wrote: »

No casual income limit before this tax year, no.

Not that it makes any difference to the OP's situation but I thought the proposed "new tax allowance for property and trading income" was dropped in the run up to the General Election.
http://www.telegraph.co.uk/tax/income-tax/government-quietly-drops-ebay-airbnb-tax-break/

sheramber

jimmo wrote: »

Not that it makes any difference to the OP's situation but I thought the proposed "new tax allowance for property and trading income" was dropped in the run up to the General Election.
http://www.telegraph.co.uk/tax/income-tax/government-quietly-drops-ebay-airbnb-tax-break/

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income