MUST I declare earnings?

carl1981

Yes.:rolleyes: :rolleyes:

G-G_4

henrykellett wrote: »

Oh good lord, i didnt know you could use fake names - suedenims? on here. Can I change it to something sexier?

Hello Fengirl, what do you want with an old duffer like me? I will be needing some of that Ciagra these people keep offering by email!

:rotfl: oh god, that made me laugh!

How much money do you make?

& do you use your own tools for the job? Your own vehicle? etc etc

It maybe that you don't make enough to actually have to pay tax on..

carl1981

G-G wrote: »

:rotfl: oh god, that made me laugh!

How much money do you make?

& do you use your own tools for the job? Your own vehicle? etc etc

It maybe that you don't make enough to actually have to pay tax on..

sounds like his tool wouldnt be up to the job

angelof1983

does anyone know exactly how much earnings you have to have before you are taxed?

ShelfStacker_3

angelof1983 wrote: »

does anyone know exactly how much earnings you have to have before you are taxed?

Everyone has a Personal Allowance of £5435 (OK, not everyone, some people have different allowances, it depends on your circumstances). If your total yearly earnings are below this amount, you don't have to pay tax. If over, you pay tax on the difference between the allowance and your earnings.

LittleVoice

ShelfStacker wrote: »

Everyone has a Personal Allowance of £5435 (OK, not everyone, some people have different allowances, it depends on your circumstances). If your total yearly earnings are below this amount, you don't have to pay tax. If over, you pay tax on the difference between the allowance and your earnings.

And "earnings" in the above case includes interest on savings (other than tax free accounts like ISAs) and share dividends.

MarkyMarkD

Most people with an occupational pension will earn enough to pay tax, meaning that every extra £ they earn doing odd jobs, trading on eBay or whatever is entirely taxable.

Andy_G_3

real1314 wrote: »

If you sold a load of old stuff at a car boot, you are not making money, you are losing it.
You are selling things for £3 that you bought for £10. That is not a profit.

However if you sell somehting for £4 that you bought for £3 that IS making money and should be declared.

Tax works both ways though - you can just as easily declare a loss as you can a profit. So to simply say if you make money at car boot you should pay tax is not correct. As the opposite would be true and people would be able to offset any loss made against tax.

What is more important is the distinction between selling your old tat/no longer wanted items in the car boot and buying items specifically for resale later at a car boot. The latter is taxable if a profit is made or you can declare a loss if no profit is made.

seven-day-weekend

You could 'sell' them your spade for £10 at the start of the job.

And then at the end they could decide they no longer wanted it and give it you back.

Actually I'm pretty sure that's illegal as you are supposed to declare the money as it is officially a self-employed business, no matter how little you earn..

Do you have anyone in the family who does not have enough income to pay any tax?
Perhaps they could have the tenner instead of you (and then give it you for your birthday).

jimmo

Is this getting out of hand or what?
Henry, if you’re getting the odd tenner plus a cup of tea from one or two of your neighbours for digging their gardens then the odd tenner is possibly taxable. In strictness, I think I could make a case for the value of the cup of tea being taxable as well, but let‘s no go there.
If you made £100 in the tax year ended of 5/4/2008 then you could salve your conscience by telling your tax office that. The tax due would be £22.00 tops and, believe me, the taxman is not going to chase you for that.
If you say that you expect to make another £100 during this tax year then maybe they will change your PAYE code to collect the £20.00 that is due for this year. In my day we wouldn’t have bothered but times change.
If you made £500 in the tax year ended 5/4/2008 then it is more likely that the taxman will want his pound of flesh (£500 @22% = £110) but you really won’t be in any trouble other than having to pay the tax.
There are only 3 situations where I can see you getting into trouble.
1) If you gradually get more and more neighbours (or customers) then there will come a time when you have a real business and need to put the whole thing on a proper footing.
2) If other neighbours, who don’t like you, see you constantly working on other people’s gardens, they may shop you to the taxman and the Benefits people.
3) If you are regularly digging the garden of the merry widow next door but one her children could perceive you as a threat to their inheritance. If so then, in my experience, they will definitely shop you to anyone who has to listen.
Maybe, as a former taxman I shouldn’t say this, but if you are genuinely doing the odd favour for a neighbour or two, and getting the very odd tenner as a thank you then I really wouldn’t worry.




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