Am I likely to get fined?

fuzexi

For the last few years I have been way below the tax threshold, (earning 8-9k) but I realised this week that in the year 2019-20 I had not disclosed £1,700 in some casual earnings, from what is basically a voluntary job but the guy is paying me occasionally to help me out. So that brings my earnings for that year to around 10k, still below the threshold. I find tax really confusing, and was trying to find an answer on the HMRC website last night, but end up even more confused and worried. I think it's not too late to disclose it, but I'm still worried I might get hammered.... if I am below the tax threshold anyway, aren't fines calculated from a percentage of 'lost revenue'?
I want to sort this out and stay on the right side of the law, as it's not worth the headache for me.
Any help would be appreciated!

Jeremy535897

You do not need to worry about any fines, because presumably you have not been asked to complete a self assessment return, and you don't owe any tax.

If this is likely to be an ongoing income stream above £1,000 a year, technically you should register as self employed. For 2019/20, I would regard the amount you earned as "other income", which you can do for small one off sources, but if it is going on, register as self employed from 6 April 2020, which you must do by 5 October 2021. See:
https://www.gov.uk/register-for-self-assessment/self-employed

Dazed_and_C0nfused

What source of income is the 8-9k coming from?

A PAYE job?
Self employment?
Rental income?
Partner in a partnership?

fuzexi

The 8-9k is from a temping job (zero hours contract) HMRC know about this.  I'm not too sure if it's classed as self-employment. They do pay Income Tax, as far as I understand. I think that makes them PAYE, right?  I'll contact them to find out.
The £1700 is helping out with a project helping kids 

comment_as...

If he's paying you "to help you out" then that sounds like a gift rather than income. I wouldn't worry unless he dies this tax year and you've made capital gains of £10,600 elsewhere e.g. selling shares or selling a house.

[Deleted User]

comment_as... said:

If he's paying you "to help you out" then that sounds like a gift rather than income. I wouldn't worry unless he dies this tax year and you've made capital gains of £10,600 elsewhere e.g. selling shares or selling a house.

What on earth does capital gains of £10600 have to do with anything?

Jeremy535897

fuzexi said:

The 8-9k is from a temping job (zero hours contract) HMRC know about this.  I'm not too sure if it's classed as self-employment. They do pay Income Tax, as far as I understand. I think that makes them PAYE, right?  I'll contact them to find out.
The £1700 is helping out with a project helping kids 

If you have a zero hours contract you are not self employed for this source of income. You shouldn't have income tax deducted, although you might have NIC deducted if you were paid over the primary threshold in a pay period.

If he's paying you "to help you out" then that sounds like a gift rather than income. I wouldn't worry unless he dies this tax year and you've made capital gains of £10,600 elsewhere e.g. selling shares or selling a house.

It is most unlikely that this is a gift, but if it were, there are no capital gains tax implications. A donee of a cash sum is not disposing of anything, and cash is not a chargeable asset. If the donor died the next day, or lived for the next 50 years, it would not change this. I can only think the poster was thinking of inheritance tax, but it is incredibly unlikely that inheritance tax would be an issue.

fuzexi

Ok, so back to the original question: am I likely to get fined by HMRC if I declare this £1700? I think the key issue is the date... it's 2019-20, so I'm confused about whether I have passed the deadline or not.

[Deleted User]

fuzexi said:

Ok, so back to the original question: am I likely to get fined by HMRC if I declare this £1700? I think the key issue is the date... it's 2019-20, so I'm confused about whether I have passed the deadline or not.

I believe that was addressed in the first reply. No notice to file, no liability, no fine.

fuzexi

[Deleted User] said:

fuzexi said:

Ok, so back to the original question: am I likely to get fined by HMRC if I declare this £1700? I think the key issue is the date... it's 2019-20, so I'm confused about whether I have passed the deadline or not.

I believe that was addressed in the first reply. No notice to file, no liability, no fine.

Oh, thanks!!! I somehow missed that!!
That's great. I'll get onto it right away!

fuzexi

Just one more question:  I went to my Government Gateway account, to try to let them know about this extra income, and it says, "Your Income Tax has not been calculated yet for 6 April 2019 to 5 April 2020

There is no need for you to contact HMRC about this.

We aim to calculate your Income Tax by 5 April 2021. Your Income Tax will be updated when that happens."
Does that mean I shouldn't tell them yet? Or is it just because they don't know about this extra income, so are saying this? Ie should I wait for 5th April?