Declaring tax not earned through PAYE

johnk | 10:06 Mon 03rd Oct 2011 | Personal Finance

9 Answers

I'm on PAYE through my employers. If I earn say £50 do I have to fill in a huge tax form to declare this extra income

Approved in principle

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dzug2

No - a letter should do it.

And if they do want you to fill in a tax form there is a short version that is not huge.

boxtops

If they send you an end of year form to fill in, the extra employment goes on a single page at the back.

EvianBaby

Is it a one off payment through some work carried out outside of your job? If so, I wouldn't bother trying to delcare anything.

If it is a regular additional income then maybe.

boxtops

Depends if the second job is deducting basic rate tax and/or NI, evianbaby - the second payments I get do, so I have to declare it to get the overall tax adjusted at year end.

EvianBaby

Ah yes, sorry. I was assuming nothing was being deducted at source on the second job.

VHG

And I am sure all these taxi drivers who work for "cash in hand" are also busy writing to the tax people to tell them about the money they have earned.

Sad to say but we have introduced a whole group of people in this country who have no interest at all in paying to tax, and in fact will do all they can to avoid it.

The tax you pay on the £50 you declare will just pay towards the child benefit for their 7 children.

We are all mugs.

johnk

Question Author

VHG I agree with you but I prefer to stay within the law. I have the odd chance of earning about £50 about twice a year. It's for coaching at a sports club and the payment will be recorded.

Skyline D

Technically the answer is yes.

If you are "earning" money, regardless of how small, that is not taxed at source then it should be entered on a tax return and taxed accordingly. dzug may well be correct in that the Revenue would accept a letter regarding the added income and send out a bill accordingly but technically a return would be due.

It's likely they'd send you a short form return anyway and it's pretty simple to complete.

johnk

Question Author

Thanks Sky, I was imagining a hugeform that would take hours to fill in!!

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