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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4329
Experience:  FCCA FCMA CGMA ACIS
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Ive a female friend who has worked part time self employed,

Customer Question

HI,
Ive a female friend who has worked part time self employed, for 16hrs per week for the past 6 years and has not declared anything to the tax man?
She's not paid any holiday/sick pay nor is she paid on B holidays.
Currently she is paid £10p/Hr but started on £8 then £9 per Hr pay rise approx each 2 years.
Q. She's worried sick about not declaring anything. How does she go about sorting this out.
I can't see she's ever been anywhere near the tax threshold and she's never claimed any form of benefit at all.
advice please
Many Thanks
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
Well, if her annual income exceeds 2.5K she should be declaring it to HMRC by means of an annual self assessment tax return. If she is self employed as the question implies then she should register for self employment and HMRC will send her a self assessment tax return form [SA100] to complete at the end of each tax year. Here is the Gov UK advice on the matter:
https://www.gov.uk/working-for-yourself/overview
She receives the usual Personal Allowances each year, currently it is 10.6K.
However, even HMRC do not wish to involve themselves in the financial futility of completing forms which yield no revenue and may tell her not to bother in future. Having said that there is a penalty regime in force at present for failure to declare, but their own press releases indicate that this is dying down.
So basically she must make her peace with HMRC and hope that they will be lenient, although leniency is in short supply in that department. I would suggest that initially she writes a letter to her local tax office explaining her situation in detail. Of course, if her annual income is below 2.5K she need do nothing, just emulate Brer Fox, 'For he lay low and say nuffin!'
I do hope that I have shown you a way forward in this matter.