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Income tax on extra income


GodAtum
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I have my job which my untaxed allowance is used up and pay tax on the rest. I sometimes do PC repairs for friends which I dont charge but get some tips for (£5-£20). Do i have to declare that income?

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I have my job which my untaxed allowance is used up and pay tax on the rest. I sometimes do PC repairs for friends which I dont charge but get some tips for (£5-£20). Do i have to declare that income?

Yes as it is a form of additional 'income'

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That a pain! Having to fill out a self assessment form for £50 a year!

It is why i stopped offering to do things like that for people in the end!

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Gah, you spend 5 minutes searching for the appropriate article and someone beats you to it.

Will the taxman really chase you if you don't declare £50 they do not know about... probably not but it is about being above board and honest.

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Gah, you spend 5 minutes searching for the appropriate article and someone beats you to it.

Will the taxman really chase you if you don't declare £50 they do not know about... probably not but it is about being above board and honest.

Debatable and I'm sure they have much higher priorities, but nobodies going to advise or promote breaking the law on a policing forum are they!

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Debatable and I'm sure they have much higher priorities, but nobodies going to advise or promote breaking the law on a policing forum are they!

I don't recall advising that. You'll note the last bit refers to being honest.

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I turned down a job as an AA patrolman many years ago because at that time the taxman estimated that each patrolman would get £60 a month in tips and I would be taxed on that regardless of whether I got any tips or not.

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I don't recall advising that. You'll note the last bit refers to being honest.

I never said you did say it, I was adding to the conversation.

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I never said you did say it, I was adding to the conversation.

Ah, my apologies then. I read it as if you were implying I was advising something untoward :)

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I turned down a job as an AA patrolman many years ago because at that time the taxman estimated that each patrolman would get £60 a month in tips and I would be taxed on that regardless of whether I got any tips or not.

Wow thats harsh!

How about gifts? I give my nieces and nephews money for birthdays and Xmas, they are over 18 so do they have to pay tax on that?

Edited by GodAtum
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How about gifts? I give my nieces and nephews money for birthdays and Xmas, they are over 18 so do they have to pay tax on that?

Nope :)

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#3

Exempt gifts

Some gifts made during your lifetime are exempt from Inheritance Tax because of the type of gift or the reason for making it.

Wedding gifts/civil partnership ceremony gifts

Wedding or civil partnership ceremony gifts are exempt from Inheritance Tax, subject to certain limits:

  • parents can each give cash or gifts worth £5,000
  • grandparents and great grandparents can each give cash or gifts worth £2,500
  • anyone else can give cash or gifts worth £1,000

You have to make the gift - or promise to make it - on or shortly before the date of the wedding or civil partnership ceremony. If the ceremony is called off and you still make the gift - or if you make the gift after the ceremony without having promised it first - this exemption won't apply.

Small gifts

You can make small gifts up to the value of £250 to as many individuals as you like in any one tax year. However, you can't give more than £250 and claim that the first £250 is a small gift. If you give an amount greater than £250 the exemption is lost altogether.

You also can't use your small gifts allowance together with any other exemption when giving to the same person.

Regular gifts or payments that are part of your normal expenditure

Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal lifestyle.

These include:

  • monthly or other regular payments to someone
  • regular gifts for Christmas and birthdays, or wedding/civil partnership anniversaries
  • regular premiums on a life insurance policy - for you or someone else

You can also make exempt maintenance payments to:

  • your husband, wife or civil partner
  • your ex-spouse or former civil partner
  • relatives who are dependent on you because of old age or infirmity
  • your children, including adopted children and step-children, who are under 18 or in full-time education
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I turned down a job as an AA patrolman many years ago because at that time the taxman estimated that each patrolman would get £60 a month in tips and I would be taxed on that regardless of whether I got any tips or not.

That's the way it is in many countries such as the United States.

The taxman estimates bar staff and waiters receive a certain amount in tips and are taxed on it whether they receive the money or not.

That's why customer service staff over there are so polite.

Edited by Londonbased
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