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Thread: Tax advice : PAYE & additional income - any experts ?

  1. #1
    Grand Master zelig's Avatar
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    Tax advice : PAYE & additional income - any experts ?

    I've recently started a new role - with the usual PAYE arrangements through a UK company.

    However, I also receive an income from our overseas partner company for business development & consultancy work.
    This is paid direct to me (gross) - & I would like to keep this legal, declare the income & pay tax on it.

    So the question is - do I just declare this as additional income on my annual tax return ?
    Is that the best way ?
    Or is it better to register as self-employed to do this ?
    Or is there another method ?

    Thanks for any advice

    z
    Last edited by zelig; 24th May 2019 at 16:14.

  2. #2
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    I've always found the HMRC staff very helpful, particularly if you don't want to take any chances.

    https://www.gov.uk/government/organi...-and-employees

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    From memory from the days of my wife's paper tax returns about 3 years ago, she had to complete a 'long return' with a section for self-employed other income (main income was PAYE) and she entered what she received and offset any costs, as applicable. In the section describing the nature of employment, she just put 'freelance education work' (it was journal editing and conference work).

    As said, HMRC were always very helpful.

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    Last edited by JonRA; 24th May 2019 at 17:14.

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    Quote Originally Posted by Suds View Post
    I've always found the HMRC staff very helpful,
    Seriously?!

    If you can get to speak to anyone who knows anything about tax these days I'd be amazed! It's all call centres and reading from scripts. In the good old days, even relatively low grade staff in tax offices were well trained and knew their stuff.

    Just get an accountant. If your affairs are simple, the fees won't be significant and you can rest easy knowing that you're being tax compliant.

  5. #5
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    Quote Originally Posted by zelig View Post
    do I just declare this as additional income on my annual tax return ?
    Is that the best way ?
    Or is it better to register as self-employed to do this ?
    Or is there another method ?

    It's not absolutely clear what the income you are receiving is but self-employed earnings sounds like the most likely scenario.

    An accountant will be able to sort out your tax compliance obligations (returns, payments on account, eg) and can make sure you are claiming any allowable expenses. Is operating via a company for this income stream an option? That creates potential advantages (and obligations).

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    Quote Originally Posted by David_D View Post
    Seriously?!

    If you can get to speak to anyone who knows anything about tax these days I'd be amazed! It's all call centres and reading from scripts. In the good old days, even relatively low grade staff in tax offices were well trained and knew their stuff.

    Just get an accountant. If your affairs are simple, the fees won't be significant and you can rest easy knowing that you're being tax compliant.
    I too found HMRC helpful but I think it was probably 10 years since I spoke to a person on an income tax matter - more recently I have written and waited patiently for a reply!

    I found the inheritance tax team very helpful by phone last year - especially as my accountant had given me incorrect advice on how to complete one of the forms.

    In an ideal world I think someone with a relatively straightforward tax situation eg PAYE and say one other income should be able to pay their tax without recourse to an accountant but perhaps the recent changes to HMRC support are making that more difficult.

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  7. #7
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    Quote Originally Posted by Suds View Post
    I've always found the HMRC staff very helpful, particularly if you don't want to take any chances.

    https://www.gov.uk/government/organi...-and-employees
    I totally agree

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    Quote Originally Posted by thegreatdogwood View Post
    I totally agree

    I don't know what you've needed to speak to them about but they are no substitute for paid for professional advice. As I said, routine enquiries are not dealt with by staff with tax training and professional forums are full of cases where taxpayers have been told things that are just plain wrong - never mind 'sub-optimal' in terms of outcome. If you ever decide to rely on HMRC helpline advice, just make sure you retain very detailed notes about what you were told so you have some come back if it goes wrong.

    We don't know the sums involved for the OP but good professional advice pays for itself and leaves you to get on with whatever your line of business is.

  9. #9
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    Quote Originally Posted by Suds View Post
    I've always found the HMRC staff very helpful, particularly if you don't want to take any chances.

    https://www.gov.uk/government/organi...-and-employees
    My experience as well. Surprised recently that they were available on a Saturday and answered within 2-3 rings!
    However I would advise you to make sure that you make a note of the time of the call and who you spoke to.

  10. #10
    Grand Master Mr Curta's Avatar
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    I can’t answer the intricacies of the question as my second income is from property which is simply declared on my ATR but I’ll echo that I’ve always found HMRC to be approachable and helpful.
    Don't just do something, sit there. - TNH

  11. #11
    Grand Master zelig's Avatar
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    Thanks all for the input.
    We’re not taking huge amounts here - so I’ll try HMRC first - but I may just get a local accountant to ensure all is above board.

    z

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    Can I suggest you ring HMRC first and explain the income you receive. Depending on the amount you maybe be able to have it included as a deduction on your PAYE code or if it’s a larger sum you will need to complete a Self Assessment retune and pay the tax in that way. If your affairs are relatively straight forward it maybe that you don’t need an accountant. Please pm if you need any help.

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    Quote Originally Posted by David_D View Post
    I don't know what you've needed to speak to them about but they are no substitute for paid for professional advice. As I said, routine enquiries are not dealt with by staff with tax training and professional forums are full of cases where taxpayers have been told things that are just plain wrong - never mind 'sub-optimal' in terms of outcome. If you ever decide to rely on HMRC helpline advice, just make sure you retain very detailed notes about what you were told so you have some come back if it goes wrong.

    We don't know the sums involved for the OP but good professional advice pays for itself and leaves you to get on with whatever your line of business is.
    Indeed David? Well I have found that my dealings with a number of “professional accountants” have also left a lot to be desired. Can I suggest you make less generalisation about HMRC as a number of us do know a lot about tax which has been gained by a number of years training.

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    Quote Originally Posted by Gav View Post
    Indeed David? Well I have found that my dealings with a number of “professional accountants” have also left a lot to be desired. Can I suggest you make less generalisation about HMRC as a number of us do know a lot about tax which has been gained by a number of years training.
    I was making statements based on experience of people whose experience I believe and trust. If you want to believe that the average person you speak to at HMRC is qualified to do anything other than read from a script, then that's fine. HMRC has been massively dumbed down since the introduction of Self Assessment nearly 20 years ago. All Revenue staff way back were well trained and knew their stuff (and the limitations of their knowledge). The people on "helplines" are, I am sure, perfectly nice hard working people but they are not trained professional tax advisers. A lot of things in the HMRC technical manuals are technically incorrect too so just because HMRC says something, doesn't mean it's correct (or in the best interests of taxpayers).
    Last edited by David_D; 25th May 2019 at 18:18.

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    Quote Originally Posted by Gav View Post
    Please pm if you need any help.
    If you are giving tax advice, do make sure you are MLR registered:

    https://www.gov.uk/anti-money-laundering-registration

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    Quote Originally Posted by David_D View Post
    If you are giving tax advice, do make sure you are MLR registered:

    https://www.gov.uk/anti-money-laundering-registration
    No David, I’m not giving tax advice I do WORK for HMRC and I would be happy to point the OP in the right direction in the spirit of the forum.

  17. #17
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    Quote Originally Posted by Gav View Post
    No David, I’m not giving tax advice I do WORK for HMRC and I would be happy to point the OP in the right direction in the spirit of the forum.

    Booyah!

  18. #18
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    I do both PAYE and self employed consultancy work.

    You need to register for self assessment and complete a self assessment tax return each year. No more than 30-60 mins work once you get used to doing it.

    Just keep all your invoices/receipts for expenses etc and input into self assessment system online each year.

    Everything can be done online, no need to talk to anyone if you dont want to :)

    https://www.gov.uk/log-in-file-self-...ent-tax-return

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