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bigduckontax, Accountant
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I was employed and PAYE last financial year but in March

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Hi - I was employed and PAYE last financial year but in March someone asked me to do a day's work for a set fee and to invoice this amount, which I did on March 31st. They paid me in May. I file a self assessment tax return each year but am unsure how to fill it out for last year. Based on that one day's work should I declare myself self-employed? and should I pay National Insurance for that one piece of work? And presumably I can enter the work in last tax year even though I was not paid until this tax year (I would prefer to). Also I have been made redundant from my full-time job (as of April 9th) - should I be paying regular National Insurance contributions even though I am currently not working? I am looking for a full-time permanent position - but in meantime there is a small chance I may do some more occasional day's work for the company that I did some work for in March.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
I would normally be inclined to class this as 15/16 income as you did not actually get paid until then. NI is not payable unless your income exceeds GBP 112 per week, then you will pay no National Insurance and you will earn no National Insurance benefit rights. However, this might prejudice your claim for benefits, so it might be advisable to include it in your 14/15 self assessment tax return so as not to preclude Job Seeker's Allowance (JSA). If you include it in your 14/15 return then HMRC will advise you of any additional NI contributions needed and tax outstanding.
If you are unemployed you should sign on as Unemployed and claim JSA. Whilst you are so registered for the Allowance your card is stamped, to use an old expression, so you do not need to pay NI. This is one of the hidden benefits of signing on even if you do not get JSA.
I would be inclined to wait and see if any more work comes through before going down the self employment route. After all work may never materialise in this way.
I do hope that I have helped you with your question.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3113
Experience: FCCA FCMA CGMA ACIS
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Customer: replied 1 year ago.

Thanks Keith that is really useful.

I actually earned £500 for that one day's work in March. If I do enter it in my 14/15 tax return is there a correct way of entering it on my tax return, without declaring myself self employed?

I have not looked into JSA yet but think I will have to.

AM

Expert:  bigduckontax replied 1 year ago.

I would be inclined, as it is a one off, to include it under Other UK income not included on supplementary pages as 'Other Taxable Income.' Don't forget to include any deductible expenses from the 500 quid you earned in the adjoining box. You will find the relevant boxes immediately after the pensions income section. You can always make a note at the end of the SA100.

You should telephone your local Job Centre immediately, declare yourself as unemployed and sign on for the allowance. with respect you should have done this on 10 April.

Thank you for your support.

Customer: replied 1 year ago.

Thank you Keith!

Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance.

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