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PAYE and one off self employment
 
            
                
                    lawleypop1502                
                
                    Posts: 7 Forumite
         
             
         
         
             
                         
            
                        
             
         
                    Hi, my son is 18 and a full time student, he works part-time at a local gym but doesn't earn enough to pay income tax.  He has recently done a one off training session with the local authority so he needs to issue an invoice so they can pay him.  His fee will only be around £100.  Is he required to tell HMRC about this one off payment as he still won't earn enough in this year to pay income tax.  Any help would be appreciated.                
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            Comments
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            the fact he is PAYE is, in this instance, irrelevant
 he is entitled to claim the "trading allowance" against his SE income. That allowance equates to being able to offset £1,000 of costs against £1,000 of income without the need to substantiate the basis of the costs., meaning 1,000 income - 1,000 allowance = zero taxable profit = no tax to pay
 In simple words, he can earn up to £1,000 tax free self employed, but must not deduct any costs from that income if he uses the allowance instead.1
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 To expand on the above, as a result there is no requirement to register as self employed if your annual revenue is below £1k (note revenue not profit)lawleypop1502 said:Hi, my son is 18 and a full time student, he works part-time at a local gym but doesn't earn enough to pay income tax. He has recently done a one off training session with the local authority so he needs to issue an invoice so they can pay him. His fee will only be around £100. Is he required to tell HMRC about this one off payment as he still won't earn enough in this year to pay income tax. Any help would be appreciated.1
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