Why not just stick it as extra income on the SATR?
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Taking on a contract while working as a Permie
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Originally posted by mudskipper View PostWhy not just stick it as extra income on the SATR?
If it was a one off I would certainly agree with just sticking it in the additional income box.Comment
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TCP is correct. The other income section of the tax return is for irregular, 'one off' type work. If you include regular income in this box it will be seen as a way of avoiding NI.Comment
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Originally posted by Martin at NixonWilliams View PostTCP is correct. The other income section of the tax return is for irregular, 'one off' type work. If you include regular income in this box it will be seen as a way of avoiding NI.
I realise that strictly speaking the exemption isn't automatic and has to be applied for but pragmatically it would seem strange for HMRC to see it as avoidance if the exemption would have applied anyway.
I would have thought that if the amounts were low and below the threshold that HMRC would be unlikely to challenge it because you're at least reporting it and paying tax on it which is ultimately the most important thing right? Maybe I'm giving HMRC too much credit.
I also wonder if the planned changes to the way NIC is collected, avoiding the need for a SEE, would have any impact on this.Comment
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I don't think they would ever question an amount below the LEL to be honest. I have never seen the other income box on a tax return questioned by HMRC, although we do not have many clients that have 'other income'.Comment
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Originally posted by Martin at NixonWilliams View PostI don't think they would ever question an amount below the LEL to be honest. I have never seen the other income box on a tax return questioned by HMRC, although we do not have many clients that have 'other income'.
I suppose a lot of people probably wouldn't even bother declaring the income anyway.Comment
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