Extra job and tax/HRMC rules

ewicc

Hi all,

I have a full time job (employee) where I get paid directly by my employer all my tax etc is worked out by them. I have previously been helping my local sports club with coaching where it was unpaid. Now they have offered me a paid coaching role, where I would get paid for coaching - £40 per session for 22 sessions. Would I need to register/set up a separate company/self employed for this?

Thank in advance

DE_612183

It depends - do they intend to pay you as an employee or as self employed?

probably the easiest way is to register for self-employment then do a SATR each year - £880 a year is not that much, the tax etc you'll pay will dependant on your other income.

Penguin_

40 x 22 = £880 which is under the threshold for reporting to HMRC as additional income so you shouldn't have to report it.

Tax-free allowances on property and trading income - GOV.UK (www.gov.uk) 

ETA: I have assumed this is on a self employed basis.

Hoenir

Have you asked the club? They might simply add you to the payroll if they operate one. 

ewicc

So as long as it is under £1000 it does not have to be declared? If it goes over £1000 for example if I have to do more sessions to cover other coaches, do i need to setup as a sole trader and/or can I just add my additional income through self assessment?
I have additional query, if I register as self employed can I claim back expenses such as any training courses that  I do (like safeguarding, first aid) and the coaching liability insurance that I had to take out? Also equipment that I might need to buy?
Also regarding VAT, do you need to register to charge/claim back VAT or is it not really applicable to my scenario?

No, it is small local club. They do not have a payroll and/or any "employed" staff. 

Thank you for your help

Savvy_Sue

VAT is not likely to be an issue: you're unlikely to be receiving more than £90k pa ... 

Do they have other coaches in this situation? Worth checking how they are doing things, but generally I'd say KIS (Keep it Simple!)

Expenses for training may well be claimable. 

Have you found this lot? https://www.ukcoaching.org/ They  may have useful advice!

General_Grant

ewicc said:

So as long as it is under £1000 it does not have to be declared? If it goes over £1000 for example if I have to do more sessions to cover other coaches, do i need to setup as a sole trader and/or can I just add my additional income through self assessment?
I have additional query, if I register as self employed can I claim back expenses such as any training courses that  I do (like safeguarding, first aid) and the coaching liability insurance that I had to take out? Also equipment that I might need to buy?
Also regarding VAT, do you need to register to charge/claim back VAT or is it not really applicable to my scenario?

No, it is small local club. They do not have a payroll and/or any "employed" staff. 

Thank you for your help

Strictly speaking, as a sole trader/business your business income and expenditure shouldn't go through your personal current account.  But odd £40/£80/£120 or whatever amounts would not be likely to upset your bank.

Yes you can deduct your expenses such as for training required to maintain your skills rather than gain new ones.  And your liability insurance is a requirement of doing the work and therefore deductible.  

You can't charge or claim back VAT unless you are registered but the work involved in keeping the records would outweigh the reclaimable VAT on your likely VAT-paid expenditure.  And charging VAT is not normally liked by clients who are not themselves VAT-registered.  So I'm guessing your £40 would have to be inclusive of 20% VAT to be acceptable to the club.  So don't do it.

ewicc

Thanks all... a cheeky question, if I offset my membership fee (to the club) against payment for coaching. So I say instead of me having to pay my membership fee to the club, I will do 10 coaching sessions for no payment. Then I get paid for all other sessions, which brings my pay from the club below £1000 - I can avoid having to setup as a sole trader is that okay or will i still need to set up as a sole trader & declare?
Thanks all for your advice/help

General_Grant

ewicc said:

Thanks all... a cheeky question, if I offset my membership fee (to the club) against payment for coaching. So I say instead of me having to pay my membership fee to the club, I will do 10 coaching sessions for no payment. Then I get paid for all other sessions, which brings my pay from the club below £1000 - I can avoid having to setup as a sole trader is that okay or will i still need to set up as a sole trader & declare?
Thanks all for your advice/help

The £1K is not a profit figure but a turnover figure.

sheramber

ewicc said:

Thanks all... a cheeky question, if I offset my membership fee (to the club) against payment for coaching. So I say instead of me having to pay my membership fee to the club, I will do 10 coaching sessions for no payment. Then I get paid for all other sessions, which brings my pay from the club below £1000 - I can avoid having to setup as a sole trader is that okay or will i still need to set up as a sole trader & declare?
Thanks all for your advice/help

But your 22 sessions is only give you £880  which is under £1000.

ewicc

I have done and may be doing extra sessions and match day coaching too now. It has evolved into a more involved role