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

  • Filter
  • Time
  • Show
Clear All
new posts

    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!


    "To be honest.... " and £ 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...


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


        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.


          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


            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.


              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 :-)


              Latest Activity


              • CGT and income
                by slopemaster
                Considering selling our rental property and trying to estimate how much CGT is due. We are both basic rate tax payers and the gain from the property will take us into higher rate, so the amount of tax we pay will depend on income for that year – it does vary year to year. I presume the relevant income...
                06-07-2022, 05:47 AM
              • Reply to CGT and income
                by Gordon999
                The capital gains Tax form SA108 is submitted after sale of property .

                07-07-2022, 11:38 AM
              • Reply to CGT and income
                by slopemaster
                Thank you all
                06-07-2022, 14:47 PM
              • Reply to CGT and income
                by Lesney Park

                You do, or better an accountant but essentially you report and pay the gain at HMRC estimating what you need to, and then report it again essentially in your tax return...
                06-07-2022, 08:34 AM
              • Reply to CGT and income
                by jpkeates
                You estimate your income for this year and declare and pay the tax accordingly.
                When you complete your tax return for the tax year, the figures are adjusted then....
                06-07-2022, 08:27 AM
              • Reply to CGT and income
                by theartfullodger
                60 days not 2 months.
                06-07-2022, 07:50 AM
              • Reply to SDLT and first time buyers
                by DoricPixie
                How old are these children if they have yet to go to university?...
                04-07-2022, 22:50 PM
              • SDLT and first time buyers
                by mpppen
                Hello again.

                Just wondering if someone can advise.

                If I sell a BTL to my children who do not own their own property, I understand that they'll get the stamp duty relief.... two questions then.

                If they're buying the £350,000 jointly, does the relief count for...
                03-07-2022, 21:52 PM
              • Reply to SDLT and first time buyers
                by jpkeates
                If the buyers are going to rent the property while they go to university, it may meet the criteria for Stamp Duty Relief but it may not.
                It would be unusual for siblings leaving university to be able to commit to cohabit in a particular place when they graduate.

                There's obviously...
                04-07-2022, 15:14 PM
              • Reply to SDLT and first time buyers
                by AndrewDod
                Apart from anything else, if you are selling the property to the kids, you are getting cash and they have a 100% mortgage - and then they are not actually paying a mortgage on 100% of 350K you will be paying it -- it is not a classic GROB, but risks falling foul of GROB rules - so when you die, even...
                04-07-2022, 14:45 PM