Ad-hoc retirement income declared as Sole Trader income?

[Lance]

Unfortunately, I think that would cost you employers NICs even if the individual is over state retirement age. There's no better way than self employment if over state retirement age for small amounts of ad hoc side hustle income.

TIL that you don't pay NICs after state pension age.

So yes. Self-employed makes more sense.

[Fred Bloggs]

Yes.


Or use an umbrella.

Unfortunately, I think that would cost you employers NICs even if the individual is over state retirement age. There's no better way than self employment if over state retirement age for small amounts of ad hoc side hustle income.

[Lance]

So even if its one small fixed price piece of work for say £3K in a calendar year, you would still register as a sole trader and declare it as sole trader income on your SATR?

Yes.


Or use an umbrella.

[Craig@Clarity]

If, once retired I wanted to supplement my retirement income with a bit of tech project work found on the online "gig economy" sites like Upwork, Freelance, PPH etc, then this could simply be declared as sole trader income in the SA return right? These are pretty much fixed price gigs and would be relatively small like creating a basic website/app for £2/3 K. There's no IR35 implications, or any issue HMRC would have with that income being declared as sole trader income?

Condition D of TAAR would probably not apply in your case. IR35 would still need to be looked at regardless of whether you're self employed or not. If the gig is less than a month, you have no need to worry. You'd still have to declare the income/expenses as self employed on your tax return. Assuming you've already filed tax returns in the past, there's no need to "register" as self employed separately. Just add your self employed income on the next applicable tax return.

[ladymuck]

If you earn more than £1k you have to tell HMRC about it

[Andy2022]

So even if its one small fixed price piece of work for say £3K in a calendar year, you would still register as a sole trader and declare it as sole trader income on your SATR?

Yes

[WTFH]

So even if its one small fixed price piece of work for say £3K in a calendar year, you would still register as a sole trader and declare it as sole trader income on your SATR?

You started out talking about taking on a few, now you're saying it's only one.

Sounds like you want us to say "sure, it will be fine", but I doubt you'll get that from many on here. Do it by the book and then you've nothing to worry about.

[hgllgh]

I might be a similarish situation shortly.
The key thing here is to play by the rules.
Register as a small trader or incorporate if you have to.
Do the paperwork. Stick to the deadlines.
As for IR35 take specific advice on a case by case basis.

So even if its one small fixed price piece of work for say £3K in a calendar year, you would still register as a sole trader and declare it as sole trader income on your SATR?

[courtg9000]

I might be a similarish situation shortly.
The key thing here is to play by the rules.
Register as a small trader or incorporate if you have to.
Do the paperwork. Stick to the deadlines.
As for IR35 take specific advice on a case by case basis.

[northernladuk]

Would it even be worth registering as a sole trader and declaring on SATR? HMRC have got bigger fish to fry rather than chasing a few pensioners for a few hundred pound per year?

If tax evasion falls in to your appetite for risk then fill your boots.

[hgllgh]

You'd need to register with HMRC as a sole trader and then they'd ask you to fill in a SATR each year.

IR35 could still apply regardless of the platform via which you secure work. It's about the contract and working practices. However, there would be less taxation for HMRC to chase if all your income is reported on SATR and the amounts due are paid on time

Would it even be worth registering as a sole trader and declaring on SATR? HMRC have got bigger fish to fry rather than chasing a few pensioners for a few hundred pound per year?

[ladymuck]

You'd need to register with HMRC as a sole trader and then they'd ask you to fill in a SATR each year.

IR35 could still apply regardless of the platform via which you secure work. It's about the contract and working practices. However, there would be less taxation for HMRC to chase if all your income is reported on SATR and the amounts due are paid on time

[hgllgh]

If, once retired I wanted to supplement my retirement income with a bit of tech project work found on the online "gig economy" sites like Upwork, Freelance, PPH etc, then this could simply be declared as sole trader income in the SA return right? These are pretty much fixed price gigs and would be relatively small like creating a basic website/app for £2/3 K. There's no IR35 implications, or any issue HMRC would have with that income being declared as sole trader income?