Not really a property question but very much tax-related...

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    Not really a property question but very much tax-related...

    I’m a full-time teacher. Going back about four years, I’ve done some extra tuition outside of my normal hours, which started out helping some colleagues' children, but, more recently, has become something somewhat bigger and regular. The majority of these payments have been made to me electronically, straight into my bank account and, as they’re often shaped around school terms, are generally very sporadic.

    However, I recently had a chat with the accounts boss where I work about the issue of tax here. To be honest, I’d never really thought about it until the weekend, when I realised that the amount I’d made from it was quite substantial (probably around £6500 for a year). She advised me to make a voluntary disclosure to HMRC. No problem - I did this by phone at the start of the week, and outlined the general situation. They were delightful and helpful, and suggested that, in the future, I make monthly payments to help keep tax payments up to date. They said they’d send out form(s) for me to fill in that detailed my disclosure. So far, however, these forms haven’t arrived. She said I’d likely incur a £100 fine for non-disclosure of the last tax year (or something) and that there had actually been an anemsty for people who do private tution at the beginning of last year (which I obviously missed).

    Here’s my problem. Up until perhaps 18 months ago, I have little idea of how many hours tuition I did. The only reason I have present logs is because of my old bank statements I can access online. A few students I saw just a handful of times; they were mainly in cash, and I never, ever kept a log. I have obviously never claimed for petrol expenses or anything like that. So…What do I do? Just give them a rough estimate? Also, should I factor in a rough estimate of what I thought my petrol expenses would be?

    Secondly, these documents haven’t come yet: doesn’t bother me too much, but does HMRC do checks on an individual who’s made a voluntary disclosure before sending out these materials? Doesn’t bother me, but wondering why they’re taking so long to arrive!

    Thanks!

    #2
    "To be honest.... " and £6500....you didn't bother to declare?

    Call HMRC 1st thing tomorrow: surely the decent patriotic thing to do is pay you tax, promptly?
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      You should be registered as self employed and submit an annual SATR. Regards Peter

      Comment


        #4
        Taxation Pete: Thanks. Just filled out the form for this and also opened a different a/c. Not really sure how much longer I'll do private work for though. Will have to wait for other forms.

        Other poster (RAB C Nesbit person): Don't think you read my thread. I have just declared it. At £6500 (which is a top-end estimate), with relevant deductions, I think it unlikely I'd pay owe more than about £1000. Given that I already pay 20% tax on my other earnings, this isn't much and not everybody is up on tax and the various procedures etc. I have voluntary disclosed and am happy to pass on any details to get the amount settled. HMRC also advised for any future payments.

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          #5
          Put together all your expenses. You will have to estimate the cash income and statements for the BACS Transfers. You may also be liable for some N.I. contributions depending on your income in any FY. Mileage is at 45p per mile for the first 10,000 miles. I assume your car is insured for business use not that that effects and mileage claim. Regards Peter

          Comment


            #6
            Ignorance of the law is no defence unfortunately, we all have to inform HMRC when we are self employed. You are required to keep a record of income and expenditure for your business. You should make every effort to calculate the income, obtain copies of old bank statements and make a list of students names and the number of times you taught them and the approximate dates and amount of income you believe that you received.

            Comment


              #7
              I just want to say how nice the regular tax posters are. This obviously isn't property related and I think it is really nice you have helped this person :-)

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