One-off payment for freelance work, on top of regular job.

[AgentProvocateur]

I work four days a week, and tax etc is dealt with by my employer.

As a favour for an ex-colleague, I'm facilitating a ten-week course for a couple hours on my day off. I'll invoice her organisation and get paid £500 for this.

What do I do about tax? Will I have to fill in a self-assessment form? I don't have the time or inclination to complete reams of paperwork, but I'm too honest not to decare it.

Will I have to set myself up as a separate company? Any advice would be appreciated.

You don't have to set up as a separate company. Just phone HMRC and say that you have done some self-employed work this tax year and you'll need to do a tax return (if in tax year 2010-11 then will have to be filed by 31 Jan 2012). You can fill in the form online, if your tax isn't v complicated it really only takes half an hour or so.

Thanks very much. That's good news, and exactly what I wanted to hear.

Just give her a reciept from yourself to her as proof you've done the work and been paid.

Then forget to tell HMRC.

I did a similar thing last year and the person I spoke to said because it wasn't a large sum of money and wasn't going to be regular thing I didn't need to fill in a tax return. Instead she has changed my tax code at my regular employment to take the tax from that.

the person was from my local tax office - not ust a randomer!

Rather than filling out a tax return you might be able to just write to your tax office at the end of the financial year detailing your untaxed income, and any permitted expenses, and they will sort it out by adjusting your tax code.

Didn't realise this thread was still going!
Lol at Innat's "randomer"!

I will call my tax office when I've invoiced and ask for advice.