PAYE and one off self employment

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.

Comments

  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 9 March at 7:09PM
    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.
  • DullGreyGuy
    DullGreyGuy Posts: 17,805 Forumite
    10,000 Posts Second Anniversary Name Dropper
    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.
    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)
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