££ Sideline from work

mark260171
mark260171 Posts: 17 Forumite
in Boost your income
Hiyas
I’m full time employed and I have found a nice sideline, which is just a sideline and not a business, of buying and selling items and making a profit using the internet to sell the items I get from boot sales and other sources.
None of it involves eBay.
The stuff I buy and sell would be in direct competition with my employers business.
So far I’ve managed to make a few thousand this year. I’m very thankful of it.
I get paid by PayPal. My salary plus sideline does not go over £36k tax threshold....no where near it.
My question is would the tax man ever need to know?
If he did would the tax man need to inform my employer for any reason?
Thanks in advance

Comments

  • soolin
    soolin Posts: 72,184 Ambassador
    Photogenic Name Dropper First Post First Anniversary
    mark260171 wrote: »
    Hiyas
    I’m full time employed and I have found a nice sideline, which is just a sideline and not a business, of buying and selling items and making a profit using the internet to sell the items I get from boot sales and other sources.
    None of it involves eBay.
    The stuff I buy and sell would be in direct competition with my employers business.
    So far I’ve managed to make a few thousand this year. I’m very thankful of it.
    I get paid by PayPal. My salary plus sideline does not go over £36k tax threshold....no where near it.
    My question is would the tax man ever need to know?
    If he did would the tax man need to inform my employer for any reason?
    Thanks in advance

    Yes the tax man needs to know if you don't inform them then it is a case of fraud, and defrauding HMRC is a very serous undertaking. Discussing fraudulent behaviour is not allowed on these boards.

    HMRC will not tell your employer .
    There is also the possibility that paypal will provide HMRC with your information if your turnover going through it is high enough.
    I’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • antrobus
    antrobus Posts: 17,386 Forumite
    mark260171 wrote: »
    ....
    I’m full time employed and I have found a nice sideline, which is just a sideline and not a business, of buying and selling items and making a profit using the internet to sell the items I get from boot sales and other sources.

    It is a business.
    mark260171 wrote: »
    ....
    The stuff I buy and sell would be in direct competition with my employers business..

    Your employer might not like that when they find out.
    mark260171 wrote: »
    ....

    My question is would the tax man ever need to know?.

    What you are supposed to do is register for self employment

    https://www.gov.uk/working-for-yourself
    mark260171 wrote: »
    ....
    If he did would the tax man need to inform my employer for any reason?

    So you are worried about your employer finding out?
  • mark260171
    mark260171 Posts: 17 Forumite
    Thanks
    I didn’t know that’s why I asked
    I’ll take the appropriate action
    Thanks
  • bengalknights
    bengalknights Posts: 5,021 Forumite
    First Anniversary First Post
    If it is a few thousand then definitely register for self employment with HMRC

    The only thing your employer would know is that you may have a different tax code to pay any tax due via PAYE.
  • Pugsley_03
    Pugsley_03 Posts: 26 Forumite
    bengalknights wrote: »
    If it is a few thousand then definitely register for self employment with HMRC

    The only thing your employer would know is that you may have a different tax code to pay any tax due via PAYE.

    Provided you don't select the option to recover PAYE from taxcode when submitting the tax return this shouldn't be an issue.

    Plus it would require the employer (likely the payroll clerk within the employers business) to put two and two together as to why the PAYE code had changed in the first place.

    Find yourself a good accountant and on them levels of earnings there shouldn't be a great deal of tax to pay anyway!
  • scaredofdebt
    scaredofdebt Posts: 1,640 Forumite
    First Anniversary Combo Breaker First Post
    See what your contract says about running a business in competition with your employer, they may prohibit it or it may not even be mentioned, depending on your employer and their business sector.
    Make £2018 in 2018 Challenge - Total to date £2,108
  • JimHoll
    JimHoll Posts: 4 Newbie
    Absolutely agree. This is considered fraud.
  • antrobus
    antrobus Posts: 17,386 Forumite
    JimHoll wrote: »
    Absolutely agree. This is considered fraud.

    Who is it that considers this as fraud?

    It might well be breach of contract, but it is not a criminal offence.
  • soolin
    soolin Posts: 72,184 Ambassador
    Photogenic Name Dropper First Post First Anniversary
    antrobus wrote: »
    Who is it that considers this as fraud?

    It might well be breach of contract, but it is not a criminal offence.

    Not reporting income to HMRC is fraud , the bit about the current employer finding out is a separate matter.
    I’m a Forum Ambassador and I support the Forum Team on the eBay, Auctions, Car Boot & Jumble Sales, Boost Your Income, Praise, Vents & Warnings, Overseas Holidays & Travel Planning , UK Holidays, Days Out & Entertainments boards. If you need any help on these boards, do let me know.. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.All views are my own and not the official line of MoneySavingExpert.
  • antrobus
    antrobus Posts: 17,386 Forumite
    soolin wrote: »
    Not reporting income to HMRC is fraud , the bit about the current employer finding out is a separate matter.

    I took Post #6 as referring to the latter.

    Not reporting income to HMRC might well be 'fraud', but actual prosecutions are few and far between. Indeed, for simple evasion the likelihood is pretty much zero.

    https://www.gov.uk/government/publications/criminal-investigation/hmrc-criminal-investigation-policy
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