Not registered as self employed

unholyangel

TheCyclingProgrammer wrote: »

I give up. I didn’t say there was something called chargeable gains tax. I have no idea where you got that from. By “chargeable gains” I was simply referring to capital gains in excess of the annual exempt amount.

The paragraph you quoted referring to the “annual exempt amount “ is talking about GAINS. As in capital gains. Not income. It is not referring to the “hobby tax” allowance of £1k. The CGT equivalent of the personal allowance for income tax is called the Annual Exempt Amount. THIS is what that is being referred to which you have erroneously confused with the £1k hobby allowance.

https://www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

If your income/taxable profits are within the personal allowance then you have no obligation to report it to HMRC.

I ask you again, if you were obliged to notify HMRC even though you have no liability, what would the penalty be?

If you weren't saying its chargeable gains tax then why did you say:

TheCyclingProgrammer wrote: »

I suggest you read it again. The part you are quoting relating to the annual exempt amount relates to chargeable gains (CGT), not income tax and is completely irrelevant. The second paragraph you quoted is the part that relates to income tax.

CGT is capital gains tax, fair enough capital gains are chargeable gains but chargeable gains aren't necessarily capital gains.

Again, chargeable/liable to tax doesn't mean it won't necessarily be a no net liability result. Not having earnings above your personal allowance doesn't necessarily mean there won't be tax to pay and having earnings above the personal allowance doesn't mean there will be tax to pay on it. If its not a specifically exempt amount/source then it needs reporting. The exempt amount for self employed income is £1000.

But I'm not going to keep derailing the thread by debating the point. You've put forth your view, I've put forth mine. Anyone genuinely interested in the answer is always free to do their own research in addition to whats been provided by us.

TheCyclingProgrammer

For the last time, there is no £1000 reporting limit in any legislation. It is a figment if your imagination. Income that results in no tax liability does not need to be notified to HMRC by virtue of s7(7) if the Taxes Management Act. It of course needs to be reported on a tax return if you have received a notice to file. This is not my view, it is the law.