Working cash in hand

[NoName543210]

I currently have a small job which pays about £5000 per year. I am on the payroll for this, get proper payslips etc.

My neighbour is a self-employed cleaner and has increasing demand. She's offered me 5 hours per week cash in hand - so I would invoice her at the end of each month. This could work out at about £3500 per year, taking my total earnings to £8000-£9000.

Since this is clearly below the tax threshold, would it be ok to do this without involving HMRC or registering anywhere? I just don't see the need if I wouldn't be paying tax anyway. I'm not entitled to any benefits either (due to my savings + DH's income) so that's not a factor.

Any advice much appreciated!

If you make more than 1k per year self-employed you need to register with hmrc. You might not need to pay tax but you need to submit a tax return.

It might mean you have to pay NI, but that’s not a bad thing as it will contribute towards eligible years for full state pension. Currently I think you need 35 years of contributions.

if cash in hand

why would you need to invoice her when it’s 5 hours set per week?

Thanks all.

It won't always be 5 hours - occasionally more when she is on holiday, or less as I won't be doing school holidays etc.

Maybe so she can record it in her accounts, paying the OP cash doesn't mean that she isn't operating her business properly. Of course she would need something to explain the payments she's making

well if she’s going to declare

she will have to provide the op with a pay slip as well detailing breakdown or pay

No she won't, she's not an employee, we're literally taking about her sending an invoice 😀

you do actually
have to provide a pay slip even if paying cash in hand

By law (Employment Rights Act 1996), employers must give all their employees and workers payslips from their first payday.

It’s not cash in hand if there is a record of it.

OP won’t be an employee.

If you have to invoice, you should declare it. There will be a paper trail in her accounts.

so she will be self employed

in which case even if no where near the tax earning threshold, still has to declare

I think you've misunderstood, you only give a payslip to an employee. The OP will be working as a self employed person sending an invoice, she's not being employed

the op is a sub contractor

so either she needs to self declare to HMRC as self employed earnings even if no where near threshold

or

she is an employee and needs a payslip

Ahh ok. So not "cash in hand" then, I will need to register as self employed... Is that as scary/complicated as it sounds? I'm not very clued up on this sort of thing at all. I'm wondering whether it will be worth it now. Which is a shame as just a few hours a week would make a big difference to me!

Make your mind up 😀

She's already been told she needs to register as self employed, there's no question of her being an employee

my point was

if she doesn’t , then that’s the alternative

and seeing as neither selected at present… these are the options (neither will be taken i reckon though 😆)

any chance of increasing hours?

Why would it not be worth it?

Your posts are confusingly worded , you're stating things that aren't true in lots of short posts and jumping arounf

I agree it's a good idea to explain the options but doing it in one coherant post would be more helpful imo

you found them confusing 🤷

I think you may still be eligible for NI? Not sure but if so will boost your pension.

If she is taking invoices it is going through her books. She is 'assuming' you are self employed and doing all the things that implies, so she is covered if anyone like HMRC investigates it will all be on you.

No, it isn't scary, very easy to do online. Go to the gov.uk website and search for 'register as self employed'. You will need to set up a government gateway login but again this is very simple. Good luck 😊