Casual one off Job - tax implications?

MrsPorridge

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

molerat

Where is he actually carrying out the work ?

Where is the person paying him based ?

MyRealNameToo

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

So what structure is the friend using? If it's a LTD (or overseas equivalent) where is it domiciled?

What is the proposed engagement model? Is he employing your Dopy Husband (guessing thats what DH stands for) or assuming he is going to be self employed as a sub-contractor?

Where is your husband actually going to be carrying out most the work? In Qatar? UK? 

You dont just phone the taxman, forms will need submitting but depending on how it's structured which ones may vary. 

Savvy_Sue

MyRealNameToo said:

 Dopy Husband (guessing thats what DH stands for) 

Possibly appropriate, but generally the D in DH, DW, DS, DD etc is understood to stand for 'dear', whatever one may be actually thinking...

MrsPorridge

Thans all - I need more info from the friend

Marcon

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

The friend could legally gift the money to your husband. That would mean the friend couldn't then deduct it for tax purposes, since a gift isn't a 'legitimate business expense' - but depending on the friend's tax domicile, that may not be an issue.

EnPointe

Marcon said:

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

The friend could legally gift the money to your husband. That would mean the friend couldn't then deduct it for tax purposes, since a gift isn't a 'legitimate business expense' - but depending on the friend's tax domicile, that may not be an issue.

then they would both be criminals 

Marcon

EnPointe said:

Marcon said:

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

The friend could legally gift the money to your husband. That would mean the friend couldn't then deduct it for tax purposes, since a gift isn't a 'legitimate business expense' - but depending on the friend's tax domicile, that may not be an issue.

then they would both be criminals 

Nonsense. Giving a gift to a volunteer is a long-standing practice.

mybestattempt

Marcon said:

EnPointe said:

Marcon said:

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

The friend could legally gift the money to your husband. That would mean the friend couldn't then deduct it for tax purposes, since a gift isn't a 'legitimate business expense' - but depending on the friend's tax domicile, that may not be an issue.

then they would both be criminals 

Nonsense. Giving a gift to a volunteer is a long-standing practice.

This HMRC guidance may be helpful:

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim100110

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim100115

EnPointe

Marcon said:

EnPointe said:

Marcon said:

MrsPorridge said:

DH is retired and receiving private and Government pensions and also pays tax.

He has been helping a friend on a voluntary basis.  Friend has landed a big job and is going to pay DH a one off payment of several thousand pounds.

Please advise on ho DH can receive this money legally - i.e. he should pay tax on it - money is from a job in Qatar - does that mae any difference?

Does he just phone tax man and tell him?

The friend could legally gift the money to your husband. That would mean the friend couldn't then deduct it for tax purposes, since a gift isn't a 'legitimate business expense' - but depending on the friend's tax domicile, that may not be an issue.

then they would both be criminals 

Nonsense. Giving a gift to a volunteer is a long-standing practice.

it is illegal ,  espcially a gift that represents the  value of doing ther work as though it  was  a job ... 

'gifts'  for volunteers , normally  volunteering for   charities or not for profit entities are generally seen as 'trivial'  on top of  subsistence  and legitimate  expenses  

LITRG

Hello, we cover the tax situation of volunteers in our guidance. Things can get complex if volunteers receive payments over and above expenses: https://www.litrg.org.uk/working/employment-status/volunteering