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Paid woodwork projects to fill spare time - liable to income tax?

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Gabriel Whitehouse21/05/2018 13:57:07
3 forum posts

Hi! I'm in a weird situation - I've temporarily had to come down to part time work as while the company I work at goes into administration (help keep costs down - I work hourly) and I have been doing some paid woodwork projects in my garage/workshop to help keep my income up so I can afford to live (haven't had to break into savings yet but my wallet keeps getting tighter!). I was wondering if these will count as taxable income like (what's left of) my job and the like - I've looked at this tax calculator (www.income-tax.co.uk/) but can't work it out myself, so was hoping someone here could help me out before I go insane lol.

Thanks in advance!

Gabriel Whitehouse23/05/2018 14:36:53
3 forum posts

That link didn't work, my apologies. Here it is again: www.income-tax.co.uk

Dave Gibbons26/05/2018 16:08:13
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3 forum posts

Yes you are liable for tax on any earned income

John Baddeley31/05/2018 23:53:27
51 forum posts
2 photos

I agree with Dave, you're liable. Sorry!

Gabriel Whitehouse01/06/2018 11:05:35
3 forum posts
Posted by Dave Gibbons on 26/05/2018 16:08:13:

Yes you are liable for tax on any earned income

Posted by John Baddeley on 31/05/2018 23:53:27:

I agree with Dave, you're liable. Sorry!

A shame, but expected. Any ideas how I go about paying tax on it? Forms I need to do, good tips etc.

Thanks for the replies also Dave and John

Dave Gibbons01/06/2018 16:55:22
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3 forum posts

Phone your local tax office, They will help you all they can. On the flip side, If you get caught not declaring, they will be after you like a Rottweiler

John Baddeley01/06/2018 21:26:18
51 forum posts
2 photos

First I would set up a system that produces an invoice, which you can tie in with your bank statements; rememver you are legally obliged to keep records [relating to incoome and taxation] for 6 years back.

Ideally the invoices would be sequentially numbered, but assuming you won't /ever/ be issuing two on teh same day, the date will probably do. (Sequentially numbered means you know if you have overlooked one, say from a late payer.) software can do this for you, or have a printed record book froma stationers with nlumbered pages.

Don't forget to keep all invoices you get for tools and materials you use, and make a note **at the time ['coz you'll forget!]** of what they were used for.

I file my own tax self- assessment, and use 'TaxCalc' software (used to be part of Which? / consumer's association) . There's plenty of help in the software.

Or you can save yourself hassle and pay an accountant, but you will still need a clear paper trail for the money. In which case I would go straight away to see them and get them to list all teh info they will want from you, adn their advice on going about this.

sorry about all the typos.

And good luck finding profit- making work. I think many here would say that is the Holy Grail!

John

derek willis 102/06/2018 09:26:12
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62 forum posts
10 photos

Nothing more to add, except I concur with John's last paragraph.

Derek.

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