Need to pay tax for short contract of work?

faringdon

Hi,

I have just earned £2538 for an electronics engineering contract which lasted 11 days. (beginning of November 2025)

They didn't pay NI or Tax for me, but just payed me the money, (after I invoiced them) which was on a pro-rata rate of 60k per annum.

The work finished after 11 days as that's how long it took for me to solve their problem.

I am not registered as a "sole trader"  and do not work via a  "limited company" as I do not know how to.

If I don't report this to the HMRC, then surely they will just work out the Tax and send me a Tax Bill?

___ ___ ___

I mean, from 1 Dec 2021 to 28 Feb 2022 I worked at a different company on a 3 month contract.

("3 month fixed term period".)

I was payed on a £36000/year pro-rata basis (£3000/month).

I also accrued holiday pay on a pro-rata bases of 210hrs/year.

As such, I was payed £484.58 holiday pay as I didn't take any holiday in the three months.

My total take home pay (including the holiday pay)  for that three months was £8633.35
I did get payslips, so i dont know how i didnt end up paying the due tax.

So obviously I had not payed all the due tax......

.......But somehow, the HMRC eventually  found out about it and sent me a tax bill for about £1000.

I just payed it and that was that.

So do I really need to declare anything to HMRC for the £2538 that i received recently?

The above 2 occasions are the only 2 occasions in my life that I ever worked in a place that didn't sort all my tax out for me.

elsien

I’m starting to think you need your own thread in this forum which we can just add ongoing employment queries to as they come along. 

You will need to fill in a self assessment form at some point. I’m not sure how you expect HMRC to work out the tax if they don’t know about your work, but if you don’t send in the paperwork when you need to, you risk getting a hefty fine. 

Try the checker here to see what it says
https://www.gov.uk/check-if-you-need-tax-return but bear in mind this is for the last tax year which isn’t going to cover money that you’ve just received so you may need to do one for next year instead at the appropriate time. 

MeteredOut

Previous thread related to this employment-not-employment

https://forums.moneysavingexpert.com/discussion/6633338/how-do-i-create-an-invoice-to-be-payed

The OP was advised to registered as self-employed on that thread.

OP, with over £1000 self-employed income, it is your responsibility to register as self-employed. You could incur penalties if you do not.

"However, you must register for Self Assessment as a sole trader if you earn more than £1,000 in a tax year (from 6 April to 5 April)."|

https://www.gov.uk/become-sole-trader

Its likely you must send in a tax return too.

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

With your 2021/22 employment, it sounds like your employer did report your earnings to HMRC, hence them sending you the tax bill. You were an employee there.

With this latest engagement, you're not an employee (as explained on the thread above) so the onus is on you to get your tax in order.

And if you need any more convincing, registering as self-employed and then submitting a tax return with your income is a great way to get additional years national insurance credits towards your state pension. Depending on your income, this can either cost £0 or a few quid a week

https://www.gov.uk/self-employed-national-insurance-rates

sheramber

You need to register with HMRC as self employed  from your start date.

Yiu Will be sent a self assessment tax return, or a notice advising you that you need to complete a return online, after 5 April 2026.

On that return you need to put down all your income from all sources for the year 6 April 2025 to 5th April 2026.

There will be a box on that return to state if you have ceased self employment. 

nakie999

You earned the £2538 as self employed even if it was only for 11 days. You need to report it through Self Assessment. HMRC will not always calculate it for you automatically. If you wait, they may send a bill later with interest added.

You can register for Self Assessment on the HMRC website. You list the amount you earned and any expenses you had to do the work. HMRC will then tell you how much tax and National Insurance you owe.

Keep the invoice you sent and the payment record. That is enough to report it. You do not need to set up a limited company for this. You can stay as an individual and report the income normally.

faringdon

Thanks, so it sounds like i need to do nothing until December 2026,  when i need to register for self assessment and prepare the tax return for Jan 2026?
My "payment record" will just be my bank statement, there is nothing else. Is that OK?

I actually had two return train trips to London from Bournemouth as expenses for this job, but i have unfortunately lost the train tickets, may i still claim these as expenses?

It seems like i need to register as "self employed for the tax year 2025-2026", even though i am no longer self employed?

QrizB

faringdon said:

Thanks, so it sounds like i need to do nothing until December 2026, 

How on earth did you reach that conclusion?

You need to register NOW.

Dazed_and_C0nfused

faringdon said:

Thanks, so it sounds like i need to do nothing until December 2026,  when i need to register for self assessment and prepare the tax return for Jan 2026?
My "payment record" will just be my bank statement, there is nothing else. Is that OK?

I actually had two return train trips to London from Bournemouth as expenses for this job, but i have unfortunately lost the train tickets, may i still claim these as expenses?

It seems like i need to register as "self employed for the tax year 2025-2026", even though i am no longer self employed?

You are leaving yourself open to penalties if you don't register by October 2026.  But there is absolutely nothing to be gained by delaying registering now your turnover has exceeded £1,000.

If your Self employment only commenced in 2025/26 why do you think a return needs to flbe filed in January 2026??

At this stage HMRC have zero interest in your bank account.  They need you to complete the relevant boxes on the tax return.  Which won't be available to complete until 6 April 2026.

Do you have any other expenses?  If not why would you want to claim for those tickets over the trading allowance?  Or were they incredibly expensive train tickets 🤔

TELLIT01

elsien said:

I’m starting to think you need your own thread in this forum which we can just add ongoing employment queries to as they come along. 

I was obviously mistaken in thinking this part of the forum was for advice on Employment related matters.  Silly me.

SiliconChip

TELLIT01 said:

elsien said:

I’m starting to think you need your own thread in this forum which we can just add ongoing employment queries to as they come along. 

I was obviously mistaken in thinking this part of the forum was for advice on Employment related matters.  Silly me.

I think @elsien was suggesting that it might make sense for the OP to stick to a single thread rather than create a new one every time a slightly different thought, but all on the same subject, enters their head.

Grumpy_chap

faringdon said:

If I don't report this to the HMRC, then surely they will just work out the Tax and send me a Tax Bill?

How would HMRC work out the tax due if the earnings are not reported?

You need to register as Sole Trader self employed and submit SA return.

faringdon said:

I mean, from 1 Dec 2021 to 28 Feb 2022 I worked at a different company on a 3 month contract.

("3 month fixed term period".)

I was payed on a £36000/year pro-rata basis (£3000/month).

I also accrued holiday pay on a pro-rata bases of 210hrs/year.

As such, I was payed £484.58 holiday pay as I didn't take any holiday in the three months.

My total take home pay (including the holiday pay)  for that three months was £8633.35
I did get payslips, so i dont know how i didnt end up paying the due tax.

So obviously I had not payed all the due tax......

.......But somehow, the HMRC eventually  found out about it and sent me a tax bill for about £1000.

I just payed it and that was that.

If you received payslips, that will have been processed through payroll and reported to HMRC by the employer.
I suspect the reason the incorrect tax was deducted via payroll was the employer having a tax code that did not correctly consider any other earnings you had in the year.