deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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I currently have the opportunity to build someones website for them. They're a local builder/carpenter and so don't need anything fancy, just a few pages plus project image library and example projects. They'd ideally like to update it themselves once built so I am considering using the GoDaddy.com website builder. Although WordPress is simple it can still take a while to get your head around it.
Anyway, I work full time and am PAYE.
If I earn something "on the side" - and continue to do so for other people, I presume this would need to be declared? Or can I earn up to the tax free allowance before having to declare?
I know Google will be my friend to ask but I thought I'd ask on here. I presume as I am PAYE I get taxed on that, so would get taxed on this additional income and require to submit my own tax return i.e. P60 and evidence of "on the side" earnings.
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johnny86
Premium Member
Registered: 15th Feb 10
Location: in a bus stop.
User status: Offline
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I think it's about 4600 undeclared
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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quote:
Originally posted by johnny86
I think it's about 4600 undeclared
Think that is just VAT is it not?
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Useful post: http://www.brighton-accountants.com/blog/tax-self-employment-still-employed/
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pow
Premium Member
Registered: 11th Sep 06
Location: Hazlemere, Buckinghamshire
User status: Offline
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Honestly? Just get them to pay you cash. Noone is ever going to find out.
There is no 'undeclared' limit. You do a self assessment, you declare your extra income, you tell them how much tax and NI you've already paid and they tell you what you owe. You can also apply for a certificate of small earnings if your income on the side is below ~£5600 - meaning you pay no extra NI on top of your normal pay.
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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You worry far too much, Deano. If it's just a one off, I highky doubt the tax man is going to come looking for you.
As Pow said, get them to pay cash. Solves the problem.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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You've already used up your allowances on your full time employment, that's why its called a personal allowance.
Register as self-employed and do a tax return.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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I'm not worried. Just depends on how well it goes and whether I can do it more in my spare time.
[Edited on 01-10-2014 by deano87]
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
User status: Offline
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If its only a one time job I would just get them to pay in cash. Its not worth HMRC while going after you.
If you need to go the official route make sure you let HMRC know within 3 months of your invoice otherwise you will get fined.
I did what your doing a few years ago. You just had to fill in the self assessment at the end of the year. If your clever you will pay no additional tax due to all the extra costs you incure like heating an office etc. Costs of buying computer parts etc etc.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Cheers all 
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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quote:
Originally posted by Rob_Quads
If your clever you will pay no additional tax due to all the extra costs you incure like heating an office etc. Costs of buying computer parts etc etc.
You can only offset the proportion which contributed to that income. So you can't pay someone else's office bill if you were on in there a week.
That said, there are legitimate expenses you can claim and you should check that out. But you can't bosh in some random receipts in the hope that you've lost money.
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
User status: Offline
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I agree you can''t just put anything in but any IT equipment you buy you can offset part of that. You can also have around £3? per week to cover the cost of your office if you work from home.
If its less than 30K they didn't even care last time I filled the forms in and just said put it all together and put the total in.
If your claiming less than 30K then its not worth their while investigating you as it will cost them more than 30K. There are much bigger fish to fry
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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So a pack of pens and a pad I'll be alright 
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Jay
Member
Registered: 26th Sep 04
Location: Liverpool
User status: Offline
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quote:
Originally posted by Ian
quote:
Originally posted by Rob_Quads
If your clever you will pay no additional tax due to all the extra costs you incure like heating an office etc. Costs of buying computer parts etc etc.
You can only offset the proportion which contributed to that income. So you can't pay someone else's office bill if you were on in there a week.
That said, there are legitimate expenses you can claim and you should check that out. But you can't bosh in some random receipts in the hope that you've lost money.
Im self employed and dont claim anything back, I had an accountant and he was useless I ended up getting a £100 fine for late self assessment so I do it myself now but I buy tools and fuel all year can I claim back on these?
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Tools yes, the way to calculate depends on the value and whether they're new or replacement.
Fuel you can do but it depends on how the car was bought - probably best for you to do mileage claim which is 45p/mile for the first 10k and 25p thereafter I think. That includes the running costs for the car so you can't claim that also but if its a cheaper car that normally works out better.
Can also do PPE and a proportion of some household expenses.
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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Careful on claiming tax relief on home office, when you come to sell your house you could be liable for CGT on the % you've been using as an office, which is why I don't stick that through the wife's self assessment.
As for vehicles, if the vehicle is 100% business use only i believe you can offset all costs of ownership in full. Again as my wife uses the family barge we just use the 45p a mile claim on all business mileage, for which she keeps a log in her accounting package incase any questions are asked
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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quote:
Originally posted by dannymccann
for which she keeps a log in her accounting package
What does she use?
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johnny86
Premium Member
Registered: 15th Feb 10
Location: in a bus stop.
User status: Offline
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I claim my train fares about 4k a year. 4 pairs of boots 2 new scaff spanners. Every year same thing
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Jay
Member
Registered: 26th Sep 04
Location: Liverpool
User status: Offline
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quote:
Originally posted by Ian
Tools yes, the way to calculate depends on the value and whether they're new or replacement.
Fuel you can do but it depends on how the car was bought - probably best for you to do mileage claim which is 45p/mile for the first 10k and 25p thereafter I think. That includes the running costs for the car so you can't claim that also but if its a cheaper car that normally works out better.
Can also do PPE and a proportion of some household expenses.
My actual role changes constantly so always buying new tools, aswell as replacements, and servicing so I'm spending thousands a year and do 900 business miles a week in a van I bought cash, really need to look into this better!
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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quote:
Originally posted by deano87
quote:
Originally posted by dannymccann
for which she keeps a log in her accounting package
What does she use?
Adminsoft accounts. I do the difficult stuff, seeing as I attempt to be an accountant as a day job
Would probably be overkill though for odd jobs
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