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!

Registering to be self employed is easy, and the forms look much more complicated than they are. There are lots of questions that just won't apply to you (so lots of answering no).
I've been self employed since I was 18, although I am not also PAYE I still fill in the SE form each year.

Worth the stress I mean. I also earn about £500 per year on a survey website, £300 delivering leaflets, £2000 savings interest... All of which would then be scrutinised if I were to register for self-employment.... Sounds like a lot of hassle

There is a questionnaire on the gov.uk website that tells you whether you need to complete a self assessment tax return based on your personal circumstances, probably worth checking.

www.gov.uk/check-if-you-need-tax-return

You should be declaring the savings interest and other things anyway.

it’s not really much hassle and a lot better than getting caught out!

As someone who has never been self-employed before, I would have absolutely no idea how to do this... I assumed it was automatic because you need your NI number to open a savings account?!

you just have HUGE savings to accrue that kind of interest op

so you earn £800 from work?

My current work pays about £450/month

Yes, I do

That’s how they work out that you aren’t declaring income. ;)

Making sure you pay the right tax is legally your responsibility, including your PAYE. I’m not sure who you think would tell you what you need to do.

Unless you earn less than £1,000 in a tax year from self-employment, you'll need to complete a Self Assessment tax return.

Your PAYE pays that. You have other work (leaflets and surveys) plus savings interest. You should have registered for self assessment. You can do it for past years. Best to read the Govt website ASAP and get it sorted.

It just seems such a small amount of money! It never even crossed my mind because I'm so far below the income tax threshold. Seems rather pointless!

So the only income you are "declaring" is your PAYE income

You aren't declaring ANY other income?

I think that's illegal

No, because it's so far below the tax threshold!

I hope you have them in an ISA so you don't have to pay any yax

https://www.gov.uk/apply-tax-free-interest-on-savings

In terms of your savings OP, you don't actually need to declare via self assessment until the interest is over 10k. It states this in the link above , fairly far down. Below 10k interest they do it by adjusting your tax code I believe.

You do pay tax on interest above 1k (or 500 if higher tax payer ) but it looks like you'd be eligible for the £5000 starting rate and able to use your personal allowance if not using it elsewhere.

But as has already been said, if your self employment is over 1k, you do need to declare that, but that's not to say you'd have tax to pay. If you do need to register, then you'd need to declare your interest in your return too but it's likely there wouldn't be a need to pay tax on it.

You would need to register self employed, it’s not a drama and it’s straight forward. You already should be with your other sources of income anyway.

Eugh, and we claim marriage tax allowance. This sounds like such a ball ache!!

It’s not a ball ache, you know how much you’re earning, keep track of that in an accounting software if you want or legit a piece of paper, submit the figures when it’s time. With the amount you’re earning it’s no drama.

It makes no difference

You don't get to decide what to declare because it's 'so far below the tax threshold'

What you're doing is illegal

You declare everything

HMRC decides on the threshold levels and apportioning

Jesus 🙄

Its the law.

It's not a ball ache

It's the bloody law 🤣🤣🤣

I'm not saying it is for me to decide. I'm just surprised I need to declare anything because I'm under the threshold! Now I know that's not the case, I will have to do it... I'm not saying that I won't!

Well it sounds like you should be already declaring income that you’re not so it will be no more hassle to do the cleaning and add that as part of the self assessment.

Honestly completing a self assessment form is probably quicker and easier than some of the surveys you do!