Ian

iTrader: (10)

Hi all, I am wondering if the people of scoobynet could help me out please.

I am in full time employment and earning over the personal allowance. (£10.600)

I am thinking about doing the odd bit of car cleaning other than my own car may be a couple of times a month to earn some extra ££ (around £50 per month, family and friends cars)

It would not be a constant thing, just every now and then.

to keep thinks all above board, how would I need to go about this please?

would I need to be classed as self employed?, \i read somewhere about changing my fulltime job tax code to cover something like this etc.


any information would be good please

thanks
ian

hodgy0_2

Seriously, ring the tax man
They will give the correct advice

Devildog

As you are effectively operaing a hobby business along side your regular PAYE employment , all you need to do is fully record your income amd related expenditure from the additional work you do in the current tax year and account for it on a tax return after April 5 2016. You just need to call HMRC and ask for one nearer the time.

Remember to put aside 20% of the profit you make to cover the tax payable (although if its not significant the Inland Revenue will probably just collect it via an adjustment to your tax code)

If you're only looking at £600 additional income per annum that's only £120 in income tax. Will be less after you deduct cleaning materials, and other relevant and allowable expenses from the income before calculating the tax payable.

National insurance is not an issue as your profit will be below the threshhold.

You'll be lucky to get anyone answering the telephone at HMRC - much better to use the search facility on the HMRC website for any additional info.

Ian

iTrader: (10)

I tried calling the HMRC today before this thread, but gave up being on hold.

tbh it would be more like £400 per year, as the cold/wet months, i wont be doing it.

I have prob spent over £200 in the last month or so on a new pressure washer, clothes, wax etc etc that I would of bought anyway, as i use it on my own car.

part of me thinks it is such a small amount, over a random time (may be 1 in one week, way be 1 a month)

but the other part wants to be above board, to be on the safe side.

daveyj

iTrader: (1)

For peace of mind just declare it. Keep all your receipts/invoices and simply add it on your tax return in 2016 as you are into that year. You will end up paying two lots of NI contributions. One at the PAYE end and one lot on class 2. You'll simply add your earnings after expenses deductions to your PAYE net income for the year and HMRC deduct your allowance and tax you on the left over. You will need to register as a sole trader for them to prompt you a tax return/type 2 NI payments. That's what I did when I went alone. If you pay a firm to do your tax return that is a deductible expense on the following year

Ian

iTrader: (10)

i read something about changing your tax code on the PAYE, that allows you to earn up to 2.5k extra a year or something like that?

daveyj

iTrader: (1)

Mine didn't change. I was PAYE and self-employed for two years. Always had the same code at that point.

wrx300scooby

Is this a wind up?

Ian

iTrader: (10)

why would it be a wind up?

wrx300scooby

Just asking that's all. Seems a bit of a weird thing to ask. No offence meant Ian.

Barxy

Not gonna lie, i thought this too

Chip

Has to be.

urban

iTrader: (1)

Yeah, has to be a wind up.
He might earn £400 a year extra and is worried about the tax man finding out

Ian

iTrader: (10)

Just wanted to check, as there are a few people I know who like nothing better, than to get people into trouble, so was trying to find out info beforehand.

urban

iTrader: (1)

I assume these people pay you in cash - if so, then what's the problem.