02 December 2020
Have you had additional Income over and above your PAYE?
If you have, you may need to check if you need to report this to HMRC. HMRC has launched new interactive guidance to let users check if they need to tell HMRC about extra income received that could be in addition to their main PAYE income. In the guidance, the user answers a series of questions about their income including any additional income. This could include things like:
- selling things, for example at car boot sales or auctions, or online
- doing casual jobs such as gardening, food delivery or babysitting
- sales of pets that generate income
- charging other people for using your equipment or tools
- renting out property or part of your home, including for holidays (for example, through an agency or online)
Using your answers, you will be directed onto the relevant next steps - for example, if you need to fill in a Self Assessment tax return, you will be directed to that page on GOV.UK. The guidance is for users who receive a ‘casual’ income (online or in person), and do not know that they might need to declare it, or possibly pay tax on it. It will help to understand what you may need to do to be tax compliant and how you can do that. You can find the new guidance is here.
If you have not told HMRC about income
Failure to disclose income can lead to interest and penalties. You can check the HMRC website here regarding taxable income. Tell HM Revenue and Customs (HMRC) as soon as possible if you’ve made money you need to pay tax on and have not told them about it. This could have happened because you:
- did not realise you needed to tell HMRC about it
- were not sure how to declare it
- did not declare it because you could not pay the tax
If you contact HMRC first, they may consider your case more favourably. If you have sold a property recently and it is not your main residence you may be subject to capital gains tax – and you only have 30 calendar days from completion to file and pay any CGT tax. If you have any concerns regarding the above information please get in touch with us. Our tax team can help with Personal and Corporate tax issues. Call us on now on 01379 640555 or email us at diss@hwca.com.
