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Where Taxpayers and Advisers Meet

Undisclosed income

Taffy24
Posts:2
Joined:Sun Nov 07, 2021 7:06 pm
Undisclosed income

Postby Taffy24 » Sun Nov 07, 2021 8:07 pm

Hi
I am employed and getting state pension tax is all above board however i have taken a part time caretaker job at local community hall which pays 50£ a week
When i started this job in 2019 nov i instructed the person to with hold 20% money as tax this they did however now ive been given a cheque for 20/21 to pay tax
I did not keep any invoices as i seemed this was a employed post and paye was taken
My wife is in bits here worrying that we will get hefty fine so forth :oops: :oops:
What is the best way to sort this mess out
Thank you all
Very interesting points tips here

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Undisclosed income

Postby bd6759 » Mon Nov 08, 2021 12:21 pm

What do you mean “… I’ve been given a cheque.”

Who gave you the cheque?

pawncob
Posts:4878
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Undisclosed income

Postby pawncob » Mon Nov 08, 2021 1:49 pm

It seems your "employer" withheld 20% tax and has now paid this to you to settle your potential tax bill. So what is the problem? Complete a tax return and pay the tax.
(Or am I missing something?)
With a pinch of salt take what I say, but don't exceed your RDA

darthblingbling
Posts:497
Joined:Wed Aug 02, 2017 9:09 pm

Re: Undisclosed income

Postby darthblingbling » Mon Nov 08, 2021 6:01 pm

I've read this as such:
- You took on a position as a part time cleaner, you were under the impression that this was an employed role and you would be subject to tax withholding at source.
- In reality, you've may have been engaged as self employed, so there is no obligation of the engager to withhold tax (caveat I'm just mentioning what the perceived arrangement is, not making comment as to whether this is actually a self employed engagement for tax purposes)
- Although they were not obliged to withhold tax, you have asked them to withhold 20% tax, to which they have now paid you for 2020/21

If you have not received any payslips or such, likely the engager is treating this as self employment. Assuming they are right about this (they can't pick and choose whether someone is employed or self employed, must be based on the facts) then you will need to settle the taxes yourself.

I'd get to the bottom of this first and just ask them if this income had been reported through a payroll, ask for a p60 if it has. Was a payment given for 2019/20? What happened to the withheld taxes for that tax year?

Given you were only earning £50 a week from Nov 2019 onwards I think you still have ample time to put things right given you may have access to the £1,000 trading allowance, which in turn may have relaxed the reporting requirement for 2019/20. But this may not be the case for 2020/21 and you may need to register for self assessment as soon as possible.

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Undisclosed income

Postby bd6759 » Mon Nov 08, 2021 10:34 pm

A self-employed caretaker? Never heard of that. I doubt it is a self-employment.

All you need do is calculate how much you owe and send HMRC a cheque. Do that before 31 January to avoid the possibility of any penalty.

darthblingbling
Posts:497
Joined:Wed Aug 02, 2017 9:09 pm

Re: Undisclosed income

Postby darthblingbling » Mon Nov 08, 2021 11:24 pm

If he's self employed yeah, also treat yourself to the trading allowance. If he's employed let the employer do the leg work as they're legally obligated to do and also pay the secondary National Insurance they're no doubt avoiding amongst many other obvious compliance errors.

As far as I'm aware they'll only go after the individual if the employer has taken reasonable care, can't see much evidence bof that.

If my employer was skirting their obligations I wouldn't be writing cheques to HMRC

Taffy24
Posts:2
Joined:Sun Nov 07, 2021 7:06 pm

Re: Undisclosed income

Postby Taffy24 » Mon Nov 08, 2021 11:32 pm

Thank you all for the information very helpfull il chase it up

darthblingbling
Posts:497
Joined:Wed Aug 02, 2017 9:09 pm

Re: Undisclosed income

Postby darthblingbling » Mon Nov 08, 2021 11:32 pm

Actually ignore me, literally getting annoyed over £50 a week and claiming a community hall is knowingly complicit in tax evasion.

Still, I'd be asking why I'm not getting payslips or having tax properly withheld. For their sake they want to make sure they're doing matters correctly.

Is it just this income and the state pension? If so, I doubt there'd be much, if anything above the personal allowance.

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Undisclosed income

Postby bd6759 » Tue Nov 09, 2021 9:03 pm

Possibly the only employee and no other PAYE obligations?


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