Retired with Side Hustle

BopBopWeed

I'm 66 and retired (with full state pension and small occuational pension) and am not fit for work generally as I'm awaiting a major operation (long wait!) but we had a major roofing problem so we're in debt so I have  a few side hustles which have exceeded the £1000 limit for earning bits and bobs. 

My question is, I noticed on my HMRC App under PAYE that I can "Add missing income".

Is this the best place to declare that income? 

I'm not really self-employed as such - just bits of income here and there and after I've had my operation (which I hope will be within the next six months or so) and paid off our debt, my side hustles will stop.  It's not a great deal of income, but it is now over the £1000 limit.

Isthisforreal99

If it's not self-employed income then what is it. 'Side hustles' can be various things but these days selling on e-bay/vinted spring to mind and require Self Assessment if over £1000 and not personal items.

BopBopWeed

Well I did wonder though didn't want to have to register for Self-Assessment but if that's the way to go then that's it. It's some rental income (from renting out my drive), and artistic services (music/book sales). I pay tax on my occupational pension each month. If I register for Self-Assessment, then not sure what amount I put in for occupational pension - the full amount (which I've paid tax on PAYE each month) or the net amount. 

I don't understand my tax code - it's 194L M1?  will that be changed if I register for self-assessment?

Might be best if I ring HMRC I think.

QrizB

No sure if the @LITRG rep gets onto the "Pensions" forum very often, but this sounds like a question for them.

https://www.litrg.org.uk/working/self-employment

BopBopWeed

QrizB said:

No sure if the @LITRG rep gets onto the "Pensions" forum very often, but this sounds like a question for them.

https://www.litrg.org.uk/working/self-employment

Thank you I'll take a look.

poseidon1

BopBopWeed said:

Well I did wonder though didn't want to have to register for Self-Assessment but if that's the way to go then that's it. It's some rental income (from renting out my drive), and artistic services (music/book sales). I pay tax on my occupational pension each month. If I register for Self-Assessment, then not sure what amount I put in for occupational pension - the full amount (which I've paid tax on PAYE each month) or the net amount. 

I don't understand my tax code - it's 194L M1?  will that be changed if I register for self-assessment?

Might be best if I ring HMRC I think.

You should be aware that there are two allowances you are entitled to offset against the activities you mention.

Firstly there is a £1000 property allowance that could shelter all your driveway rental - see below

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Secondly there is  the £1,000 trading allowance you are already aware of.

If the driveway income is under £1,000 and your other trading income similarly below the separate £1000 threshold, you have nothing to declare for self assessment purposes, and can avoid submitting a return.

dont_use_vistaprint

if you are regularly making over £1000 per annum you should register self-employed and that will trigger an annual self assessment

This is the best way to handle it rather than putting it in missing income because you will want to sum all your expenses incurred generating  your revenue. I don't think the additional income box on the HMRC app will allow you to do this - I think it's for PAYE income only

don't worry about registering for self assessment. It's usually the best way of handling things and put you in full control of how much tax you pay 

BopBopWeed

poseidon1 said:

BopBopWeed said:

Well I did wonder though didn't want to have to register for Self-Assessment but if that's the way to go then that's it. It's some rental income (from renting out my drive), and artistic services (music/book sales). I pay tax on my occupational pension each month. If I register for Self-Assessment, then not sure what amount I put in for occupational pension - the full amount (which I've paid tax on PAYE each month) or the net amount. 

I don't understand my tax code - it's 194L M1?  will that be changed if I register for self-assessment?

Might be best if I ring HMRC I think.

You should be aware that there are two allowances you are entitled to offset against the activities you mention.

Firstly there is a £1000 property allowance that could shelter all your driveway rental - see below

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

Secondly there is  the £1,000 trading allowance you are already aware of.

If the driveway income is under £1,000 and your other trading income similarly below the separate £1000 threshold, you have nothing to declare for self assessment purposes, and can avoid submitting a return.

That's really helpful, thank you.

BopBopWeed

dont_use_vistaprint said:

if you are regularly making over £1000 per annum you should register self-employed and that will trigger an annual self assessment

This is the best way to handle it rather than putting it in missing income because you will want to sum all your expenses incurred generating  your revenue. I don't think the additional income box on the HMRC app will allow you to do this - I think it's for PAYE income only

don't worry about registering for self assessment. It's usually the best way of handling things and put you in full control of how much tax you pay 

Thank you - I have done self-assessment some years ago, I jsut wondered how it would work out with the tax I'd already paid, i would imagine it would calculate it automatically.  i don't even know if my tax code is correct - I'm on an emeergency one since i got my State Pension, plus the M1 is some kind of marriage allowance i think. I find these things a bit overwhelming, I might get in touch with my old accountant from several years ago and see if they can help me - an extra cost, but it would be off-set against the income form the hustles hopefully.

BopBopWeed

Isthisforreal99 said:

If it's not self-employed income then what is it. 'Side hustles' can be various things but these days selling on e-bay/vinted spring to mind and require Self Assessment if over £1000 and not personal items.

thak you - i did reply above, though not directly. I did put in my National Insurance details in for eBay and Vinted when they requested it, but things I sell on there are all stuff i have sold from my own items, second-hand and sold at a loss - often a very big loss. I understand this income does not have to be declared. I recently had a message from Vinted to tell me how much I'd made during the eyar and that it was for my information only.

Dazed_and_C0nfused

BopBopWeed said:

Well I did wonder though didn't want to have to register for Self-Assessment but if that's the way to go then that's it. It's some rental income (from renting out my drive), and artistic services (music/book sales). I pay tax on my occupational pension each month. If I register for Self-Assessment, then not sure what amount I put in for occupational pension - the full amount (which I've paid tax on PAYE each month) or the net amount. 

I don't understand my tax code - it's 194L M1?  will that be changed if I register for self-assessment?

Might be best if I ring HMRC I think.

You enter the taxable pension income which will be shown on your P60 (effectively the gross amount NOT the net amount).  You also include details of the tax already deducted so you get credit for that.

194L is the tax code, the L means you get the standard Personal Allowance and, with regard to a later post, do not have Marriage Allowance, either, as the applicant or recipient.

M1 means the tax code is being operated on a non-cumulative basis, which is quite normal for lots of people.