Working for a friend - what do I do about tax?

saveandgetfit08

Hi all,
Hope someone can help with this query.
I haven't worked for 5 years since I started a family and therefore not paid tax or NI.
I have recently started to do some work for a friend - helping him with a project for his own business. In order to pay me he has asked me to invoice him for my time and is paying me by cheque, I have so far invoiced him for 1 months' work.
What do I need to do regarding tax & NI? Do I need to register with customs and revenue in some way? what I am earning is so negligible that I'm sure I won't be eligible for tax on it anyway.
Hope some of you will be able to advise.
Thanks

sparkle03

Hi There

As you are getting paid for the work you would be classed as self employed. You will need to register, (dont worry its not as hard or scary as it looks!)

You will have to pay NI unless you opt out, thats if you will be earning less than the required amount. You will need to fill in a tax return at the end of the tax year and will have to pay tax on any earnings over your personal allowance.

If you need any other help just pm me.

Nikki

JWF

You can find a registration form and helpline number here :

http://www.hmrc.gov.uk/startingup/register.htm

You must register no later than three months from the date at which you started working for yourself.

saveandgetfit08

thanks
that was really helpful and have registered this morning. pretty painless!!
s