Tax Return - help please!

Off-Topic Chat
1

Hi all. Are there any accountants here. I’m so confused.

So I am employed. I would like to try something on the side for a bit to see how it goes. With the idea of eventually leaving my job and working for myself.

The tax part is confusing me so much. As someone who is on PAYE and has a taxable income. Do I need to declare everything I earn from my “side hustle” straight away. Or only if it goes over the £1000 mark? Which is what I’m reading allot online. Can someone who knows please put me right. Thanks.

2

That’s how my wife does it. Declares all her additional income from her side consultancy.

Some years its below £1000, and not tax, but she declares it still.

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3

I believe it’s going up to £3000 from April.

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4

Hmmmm i should claim my ‘govy jobs’ rather than vash in hamd for favours :rofl:

5

That would be good news.

I know my wife was annoyed one year because she’d earnt just above the threshold and the tax meant she dipped just under the threshold in terms of take home extra earnings.

At the end of the day, i strongly believe that if you’re lucky to earn enough to pay taxes, you should pay your full dues.

We got a lot of help when our kids were small and we werent earning much. The NHS is also something to cherish. I’m happy to pay more in now that I earn more.

6

I am an American reading this thread, so I’m going to ask an ignorant question because I do not know how it works over there. From the comments I read, it looks like not everyone has to file taxes, although I do not know if that is the right word to use. In the states, everyone files taxes during tax season, which is the first of the year until April the 15th. This happens no matter what your income is. How is that different to how it works in the UK?

7

No, most people are P.A.Y.E. (Pay as you earn) and tax is taken directly from your wages. So say you earn £100 a week, you will actually take home £80 and it will show that deduction on your pay slip. It’s mainly self employed people who have to do tax returns.

8

I see. Sounds slightly like our system, but a little more simple (meaning better) to be honest. Thanks for the explanation

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9

Yes, PAYE is a brilliant system. In the main, you dont get caught out by unexpected tax dues, and changes in earnings, especially from high earnings to low earnings means people are left with tax bills they cant afford anymore.
I think other countries in Europe arw following suit, as it just plains makes sense and reduces bureaucracy arouns the pltqxing process.

10

Usually unless your making over 10,000 threshold then it don’t get taxed… not sure if it’s changed of recent but worth a look up on the gov website

11

having been bitten by tax returns, the most boring and practical advice I can give is to talk to an accountant (i.e. one that you’re paying to be your accountant). It’s much less expensive that I thought it would be, and you have some recourse if the advice is wrong.