A Taxing Question
September 23, 2006 8:45 AM Subscribe
UK: I've thought of a way to earn a little pocket money. Will the taxman be bothered?
I have full-time job. I also have a great idea.
I would like to make a little money in my spare time. I would be doing business directly with my customers.
Now, if this enterprise ends up earning me a few bob, at what point would I have to tell the taxman? Do I have to tell the taxman? Would I have to register as self-employed?
I have full-time job. I also have a great idea.
I would like to make a little money in my spare time. I would be doing business directly with my customers.
Now, if this enterprise ends up earning me a few bob, at what point would I have to tell the taxman? Do I have to tell the taxman? Would I have to register as self-employed?
As you already have a full-time job you’ll already be earning enough to be getting charged income tax. You’re obligated to report (and get taxed on) any non-exempt income passed that point.
posted by ed\26h at 9:19 AM on September 23, 2006
posted by ed\26h at 9:19 AM on September 23, 2006
Registering for self-employed status is probably inapplicable. But it does mean you can find out nice ways of writing stuff off against tax.
Tip: get yourself an accountant. The Revenue & Customs people are insanely incompetent with an added twist of sadistic unhelpfulness. Most people will save money by getting their tax returns done by an accountant. I know that when my family started doing so, it's always saved us money - and usually you get a good split on the returns (the accountant takes £50, we take £150 - and the taxman has £200 less to spend on killing poor, brown people in faraway places or on incompetently managing government computer installations).
posted by tommorris at 12:23 PM on September 23, 2006
Tip: get yourself an accountant. The Revenue & Customs people are insanely incompetent with an added twist of sadistic unhelpfulness. Most people will save money by getting their tax returns done by an accountant. I know that when my family started doing so, it's always saved us money - and usually you get a good split on the returns (the accountant takes £50, we take £150 - and the taxman has £200 less to spend on killing poor, brown people in faraway places or on incompetently managing government computer installations).
posted by tommorris at 12:23 PM on September 23, 2006
Legally you have to tell them. There are, however, a lot of people out there committing daily tax fraud and never getting caught. I have an uncle who used to investigate such fraud, and he said that the majority of cases where people were busted involved third parties calling the authorities and letting them know.
So, you could do it and get possibly get away with it, or take no risks and declare it. The trick is to never get audited, but you can't guarantee that will never happen. If you stick to cash only and have no paper trail, then maybe you'd get away with it, even in the event of an audit if you're not being showy. (`Hey, how'd you afford the new car on your salary' etc...)
In the end there's more peace of mind in just being straight up about it.
posted by tomble at 12:15 AM on September 24, 2006
So, you could do it and get possibly get away with it, or take no risks and declare it. The trick is to never get audited, but you can't guarantee that will never happen. If you stick to cash only and have no paper trail, then maybe you'd get away with it, even in the event of an audit if you're not being showy. (`Hey, how'd you afford the new car on your salary' etc...)
In the end there's more peace of mind in just being straight up about it.
posted by tomble at 12:15 AM on September 24, 2006
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posted by grouse at 8:57 AM on September 23, 2006