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AIBU?

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Original poster

Declaring extra income or not?

66 replies

Gene9 · 14/12/2016 23:57

Probably a poor choice of title, sorry. Have posted here for trafficking as I'm worried about getting into legal troubles!

Hi, I've been a PA all my working life really. Left my job for personal reasons about 5 months ago.

Just landed a new role, lovely position as a PA, really happy. Not self employed.

Thing is, I've landed myself a very nice little money earner online... I signed up two weeks ago for fun and so far I've brought in a lot

I'm scared - I know I need to declare this as two incomes so how do I go about doing this? I'm clueless

The online thing is very dependant on me, if I didn't use it that week I'd get £0. What I actually get from doing it can vary differently, apparently.

With all this in mind, how do I tell (whoever I need to tell), about my earning amount since it can be anything from £0 up.

Thank you

OP posts:
chipmonkey · 15/12/2016 00:39

Might also be worth talking to an accountant. Obviously they will charge a fee but they can also tell you what might be tax deductible. I'm not in the UK so obviously the rules are different but I hadn't realised that here, medical expenses can be offset against tax, for example.
What is definitely true everywhere, is that if you don't declare it on time, there will be penalties if revenue find out about past earnings that you didn't declare. And agree with the poster that you need to put away a bit more than you think you owe them in an "untouchable" account.

IamNotDarling · 15/12/2016 00:42

Sorry penguin

baconandeggies · 15/12/2016 00:43

You'll still pay via PAYE for your employed role (monthly, or whenever you're paid). Then if you've earned over your tax threshold for your total combined annual earnings, you'll have a separate lump sum bill to pay months & months later - which is the calculated tax due for your freelance role.

MrsHathaway · 15/12/2016 00:48

So my tax now roles into one whole chunk of non self employed earnings and self employed earnings? Instead of me paying two separate taxes if that makes sense?

Sort of.

Say in 2016/17 you earn £20k as a PA in your normal job. On top of that you are going to earn £10k as a ... I don't know ... webchat tap dancer.

You will pay £1800 tax (probably) on your normal job, which will normally be sorted by your payroll as PAYE. But as your total income is £30k you will be liable for £2800 in total. When you fill in your tax return it will tell you that the tax shortfall is £1000, and you pay it.

You don't get a tax allowance per job, but altogether. Is that what you mean?

PenguinsandPebbles · 15/12/2016 00:50

iamnotdarling

I appreciate your apology, I'm pretty sensitive right now, due to personal things.

But I've also run my own company for a few years now and I'm pretty clued up on tax law.

Original poster
Gene9 · 15/12/2016 00:53

You don't get a tax allowance per job, but altogether. Is that what you mean?

That's what I meant, yes.

I'm just confused because by the way I've read what you've said, it sounds like I'm paying another bit of tax for my PA role alongside the self employed part? So two parts to my PA role tax - the initial PAYE part and my self employed part alongside the self employed job tax?

OP posts:
MrsHathaway · 15/12/2016 00:59

The tax payable on your PA income is sorted by your payroll through PAYE, but that doesn't account for all the tax you have to pay (£2800 in total, being £1800 from PA job and £1000 from tap dancing).

So you pay £1800 through PAYE and £1000 in cash IYSWIM.

If you didn't pay any PAYE at all, you'd have a bill for £2800 at the end of the tax return.

FanSpamTastic · 15/12/2016 00:59

It really depends on how you are earning the extra income. If you are trading - e.g. Selling stuff or blogging and getting ad revenue etc this could be self employed income. If you were winning money from online poker then this may or may not be an income. Not one I have ever come across!!

mumoftwoboysandhusband · 15/12/2016 01:02

What's the online work you do ?

Original poster
Gene9 · 15/12/2016 01:02

Mrs I get it now!

I thought I was paying the £1800 from PA role and £1000 for self employed job PLUS more tax for the PA role just because I'm also self employed, if you see what I mean?

Thank you ever so much for your help FlowersCakeWine

OP posts:
Original poster
Gene9 · 15/12/2016 01:03

Fan meh, nothing like either of those things really.

More like doing something for someone virtually and the company paying me for it

OP posts:
PenguinsandPebbles · 15/12/2016 01:05

what is your other income

PenguinsandPebbles · 15/12/2016 01:08

More like doing something for someone virtually and the company paying me for it

WTF

MrsHathaway · 15/12/2016 01:09

There are lots of online PA websites. It sounds like that kind of thing. Stuff like booking flights or arranging a flower delivery for one's mother. Stuff that very rich people are far, far too busy to do for themselves!

Original poster
Gene9 · 15/12/2016 01:12

I don't really mind saying what I'm doing, but I'd rather not be reported for trying to 'recruit' people and face being reported

Put it this way, it's a completely virtual service. I am paid for said service by the company who are give this service through. No arrangements are done. Completely online profession. I log off? So does my shift

OP posts:
Original poster
Gene9 · 15/12/2016 01:14

Also no shift work. Can log on when I want to so no rota (that's not a criteria for being self employed anyway but thought I'd mention it)

OP posts:
JustAnotherPoster00 · 15/12/2016 01:18

Sounds like OP has found webcamming can be quite lucrative lololol Grin

PenguinsandPebbles · 15/12/2016 01:20

So your a PA by day..

Internet hooker by night?

PenguinsandPebbles · 15/12/2016 01:21

Your not going to recruit anyone here

OlennasWimple · 15/12/2016 01:23

Remember that you don't just pay tax on your income, you pay tax on your income after taking off any deductible expenses. This can be a bit of a grey area, but you can often deduct the cost of things necessary to your online tap dancing, such as new tap shoes, a proportion of your internet service provider etc etc.

A good accountant will be able to advise what is legitimate, and will probably cost less than you think (a couple of hundred pounds - and their fee is tax deductible too)

Original poster
Gene9 · 15/12/2016 01:26

Ffs! In absolute stitches.

Yes, it is webcam that I've discovered. I don't do any fanny flashing, and DH is in on it doesn't join in obviously

Not sure this would come under 'personal services'. The company lead me to believe it came under modelling Grin frowns at sheer lack of potential to model

OP posts:
PenguinsandPebbles · 15/12/2016 01:36

As you are clearly selling a service

You should be paying taxes

Original poster
Gene9 · 15/12/2016 01:37

I'll be on it pronto as of tomorrow lunchtime

OP posts:
Rixera · 15/12/2016 01:39

Fellow camgirl five!! (Well, former now I have a more possessive OH, but still.)
I called it modelling too. I used to model anyway and just lumped the income all together. Doing taxes is a faff but better to be honest.

Original poster
Gene9 · 15/12/2016 01:45

Rix thank you!

Did you earn decently too? Seems quite easy to make a lot if you treat it like a full time job

OP posts:
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