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extra income earned

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royzart | 17:00 Thu 22nd Mar 2012 | Personal Finance
5 Answers
Hi...i have recently earned extra income
i was paid by cheque and intended to
deposit this into my isa account,but how
would i pay the income tax owing on it
thank you

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This might help.

I do not think there is any hurry, so don't worry about it.

http://www.hmrc.gov.uk/sa/register.htm
17:19 Thu 22nd Mar 2012
do you do a tax form? if you do just declare it on there.
I presume this would be on a self-employed basis. You will need to fill in a self assessment tax form. You won't have to pay the income tax immediately.

Look on this Link on the section on How to Pay Tax on Extra Income

http://www.hmrc.gov.u...metax/ways-to-pay.htm
This might help.

I do not think there is any hurry, so don't worry about it.

http://www.hmrc.gov.uk/sa/register.htm
You really really don't want to register as self employed just for occasional casual earnings.

There is space on the normal self assessment form for them, and if you don't get one a simple letter to the taxman should be sufficient to resolve the issue
I am assuming from the wording of your letter that you do not currently have to complete self assessment tax returns.

If you have a PAYE income source, and the miscellaneous earnings are modest, so that the tax can be collected by an adjustment to your PAYE code, then the simplest solution is simply to notify the tax office that deals with your employ

If you have spare personal allowances that are sufficient to absorb in full the extra earnings then you may not have any requirements at all (except that if you claim tax credits or other means-tested benefits then you would have to include it in the annual declaration for that purpose.

If this is a serious activity that amounts to self-employment, then you would have to register using the link mentioned earlier in this thread. However it may be misleading to suggest that there is no urgency. If you are under pensionable age, and the earnings are sufficient that you would be ineligible to claim exception from payment of class 2 National insurance contributions, then you risk a £100 penalty if you wait for more than 3 calendar months from the commencement of trade before registering.

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