Income Tax Help

glider3560

Charly_Wilson wrote: »

She would earn £30 per week, as she can’t drive she would have to rely on taxis, @ £7 there and back equals £14 in expenses, so she would earn £16 for two hours cleaning a total of £832 per year so she might be OK

You can't deduct the £1000 trading allowance if you deduct costs. It's one or the other.

So either:
a) £30 per week * 52 = £1560, minus £1000 = £560 taxable
or
b) As you've worked out, deduct expenses to get £832 taxable

You have to choose one or the other, but can make the choice at the end of the year when completing the tax return.

00ec25

Charly_Wilson wrote: »

The Local Authority said, as she’s a relative doing the cleaning, my daughter and her grandmother would have to draw up a small contract and then write on every receipt confirming she’s registered to pay tax. Personally I think its B S

She would earn £30 per week, as she can’t drive she would have to rely on taxis, @ £7 there and back equals £14 in expenses, so she would earn £16 for two hours cleaning a total of £832 per year so she might be OK

it is right and proper that the council is seeking evidence that money is actually changing hands for actual work performed, and that said money, which is therefore a cost to the taxpayer in terms reduced contributions from granny towards her care bill, is going to find its way (in part) back to the taxpayer as tax paid on said earnings

I would hope you agree that steps must be taken to discourage / track tax evasion - this is an obvious one for them to take....

if she can't drive, and would incur such travel costs, it begs the question is she really doing it ?

01afraser4

Charly_Wilson wrote: »

The Local Authority said, as she’s a relative doing the cleaning, my daughter and her grandmother would have to draw up a small contract and then write on every receipt confirming she’s registered to pay tax. Personally I think its B S

She would earn £30 per week, as she can’t drive she would have to rely on taxis, @ £7 there and back equals £14 in expenses, so she would earn £16 for two hours cleaning a total of £832 per year so she might be OK

This may seem a forward question, but who is benefitting from this arrangement?

In terms of the grandmother, she is no better or worse off as you've already mentioned.

Is the £16 p/w profit really enough to justify the effort and time spent by your daughter? I can't really blame the council for being wary of this arrangement to be honest.

Charly_Wilson

01afraser4 wrote: »

This may seem a forward question, but who is benefitting from this arrangement?

In terms of the grandmother, she is no better or worse off as you've already mentioned.

Is the £16 p/w profit really enough to justify the effort and time spent by your daughter? I can't really blame the council for being wary of this arrangement to be honest.

Her grandmothers been paying a larger cleaning firm £47 per hour, but in all honesty they haven’t been doing that good a job. My daughter is trying to pay off her mortgage along with long term debts, so they will both benefit from the arrangement.

The Council aren’t being wary as people claim Disability Related Expenditure (DRE) all the time. Apparently the Council have to find fifteen million pounds due to government cuts. From my many years dealing with them, the vulnerable and disabled seem to be one of their favourite targets. They tie people up in red tape and bureaucracy which then discourages them from making a claim.

My daughter contacted the Tax office and they said they could collect the tax due by adjusting her current code under her PAYE job.

So all sorted. Thanks for your replies.