Help! In a bit of a tizz.

racer256

Hi EveryoneI really need some advice with tax. I work full time and last year I took on a second job as a Body Shop Consultant. I wasn't advised on taxation and when I asked I was told I wouldn't earn enough to pay any tax despite me working full time where my company pays my tax. I worked for them for nine months and now am panicking because I may get a fine & a prison sentence. During this time I sold a few items on Ebay, a few mystery shops and a few cashback sites. I am in a bit of a pickle and I am very worried now as my friend said this is serious. Am I working myself up for nothing? What is the next step in declaring it? I can't believe I have been so stupid. Please help.Thanks in advance.

LittleVoice

Hello, racer

Calm down.
Prison is not going to happen for you on this one!

Cash back sites should not have any consequence - if it's cash back then it is a refund of what you are paying, not income.

The Ebay probably won't matter if it is just your own things you are selling, just to dispose of them.

For the self-employment side (mystery shopping), did you receive cash above expenses? If you did, then to feel OK with HMRC, just phone them up (get number from local phone book) and let them know. They'll tell you what to do.

Regarding the second job, it's the employer's duty to deduct appropriate tax and NI, not yours. How has the shop been paying you? Do you get a payslip? Does it show what tax code they are applying?

LV

System

LittleVoice is correct, prison is not an option .

When you started working as the Body Shop consultant they should have given you a P46 to complete and that would have given you the chance to declare that you already had a full time job. They would then have completed their half of the form and sent it off to the tax office with whom they are registered.

That's what should have happened but if it didn't it was up to you to tell HMRC that you had a second job. However it's not to late to rectify this and all you have to do is contact HMRC now and give them the details from the P45 which they should have given you when you left their employ and your income from the mystery shopping. If you owe any tax and it's small then HMRC will just adjust the tax code which is applied to your full time job.

racer256

Thanks everyone for your quick replies. Little Voice, I was classified as Self Employed. As for the cashback sites, some is cashback some are click throughs so still not sure on that one. Pam17, I wasn't given a P46 or a P45 when I left but I will contact the HMRC today. Jimmo- a Body Shop Consultant sells beauty products made by the Body Shop in other peoples house. Not working in the shop. Thank you all for your kind advice and words I will keep you posted.

LittleVoice

Oh, so Body Shop Consultant is like an Avon Rep, so you are self-employed. (I had thought it was working as an assistant in one of their retail outlets.)

I hope you were able to contact HMRC today. I expect they will have sent you forms to complete to confirm your self-employed status.

Best wishes

LV

racer256

Hi everyone, I phoned the HMRC yesterday and they said thay can do it over the phone but I need a start date. Is there a penalty for registering after the three months? I started in June last year with the Body Shop and mystery shopping so I am still hesitant.

Hoddie_2

I don't think either the Body Shop consultant or mystery-shopping role would constitute a trade, although the money you've earned from both would still be taxable.

Rather than register as self-employed, I'd write to your tax office and say you earned £x commission during the year 2006-07. This would not involve any penalties and you'll be able to pay any tax you owe over a full 12-month period.

Then all you do is report this income on an annual basis whether they ask you to or not, and you've done all you need to do. If you've already registered as self-employed, put a statement in the above letter stating that you registered in error.

By the way, cash from cashback sites is also commission and therefore theoretically taxable, but I don't imagine many declare it to the taxman.