I need some advice from someone who knows about tax / employment issues!
I've recently taken on a 3 hours/week cleaning job for a local charity. They pay me with a cheque at the end of each month - it's just over £100/ month, so pretty minimal, certainly well below any tax threshold. I assume the payment comes out of their petty cash, I don't get any payslips or other paper work, just the cheque in an envelope.
BUT I've now had my Student Loan deferral forms come though and Census Form too, and know it won't be long until the Child Tax Credits ones follow - and I don't know how to fill them in with regard to the job. My £100 /month salary won't affect my student loan or probably the tax credits - but I really don?t feel comfortable lying on official forms and saying I'm not working when I am.
A friend suggested I could register as self employed, then invoice the charity for hours worked - but then surely I'd have to do a tax return and file business records which seems like a lot of effort for my minimal income. And would I need to set up a company? I don-t want to put the charity to hassle / liability as I'm so pleased to have the job; the previous cleaner worked for them in this way for about 20 years without comment.
If I were paid in cash, I'd probably be more inclined not to say anything, but as I get a cheque with both my name and the organization's details on it every month I feel as if there is hard evidence of my role with them, were anyone at the tax office to investigate.
Any thoughts on how to handle this? Am I being paranoid?