Can you substantiate this comment.The revenue have been pursuing small (£100-£1000) dodgers extremely aggressively in the last 18 months.
Another angle to take especially if they are a friend is just for them to give you £100 as a gift, gifts are not taxable (unless you are trying to avoid death duties and are in great amounts), you can still draw up some sort of contract but don't bill the friend for the website. Fair enough later when you are doing it for clients then by all means declare it.
Last edited by jsnetman; 25th May 2010 at 11:03 PM.
I suppose being from bean counter stock you adopt some sort of need to declare anything you earn, but as it happens two fairly close acquaitances both of bean counter fraternity have been struck off for tax evasion, or as it is better known cooking the books.
Last edited by jsnetman; 25th May 2010 at 11:21 PM.
I don't understand what you're trying to say. Struck off what?
Not allowed to be a practitioner in accountancy, thats what I mean. Similar to this:
Last edited by jsnetman; 25th May 2010 at 11:39 PM.
I still don't understand what you're saying. I'd have thought that would make you more cautious, not less.
All I am saying is that 100 quid declaration to the taxman is laughable, it would probaly cost more in man hours and paperwork to process it, I am not in favour, especially of politicians and big businesses of evading tax and we are talking big sums here. Joe Bloggs making an earner here or there does not come into the equation.
And ever since tax collection came about there has been a black market economy where people will deal without the taxman knowing. For someone to use their skills to earn an extra few quid is hardly a major crime. Granted if this grows into a regular and substantive income it should be declared, or else they risk the wrath of the taxman.
Just one more point, my technician offered to do the school disco and charged £120, the school paid out of petty cash. Being a good citizen he phoned the tax office they told him not to bother unless it was a regular income.
Last edited by jsnetman; 26th May 2010 at 12:31 AM.
if im honest, even if i was going to be paid £1, £100, or more, i would want to make it legal, im just that kinda guy, i always ensure i correct people if they give me too much change etc, always have lived that way, and its what makes me happy
i am going to make a phone call to the Taxman today, to explain what is happening, and explain it is very erratic and not definite income, therefore what should i do, get it from the horses mouth as such.
see, its a very hard one, because this may just be a bit of fun, and odd jobs for people on the side of work, but i am still offering website design via my site, even though i know its not going to get much traffic, if any at all. but it could all take off, which i hope it does, i would love to get into digital art further down the line. i was just hoping mr taxman would make it as easy as possible for me to be a good boy!
You must register as a sole trader within 3 months of starting a business.
There are standard terms and conditions all over the webs that will cover this. The long and short is to get them to sign off on the project, that is it is finished and bought as is. If they want it modified, then you can charge extra to do so.
"The published HMRC performance report shows that the average cost of collection is just over 1p for every pound of tax recovered, which represents a very good "return" on the money spent."
So it doesn't actually cost the taxman that much to retrieve tax on income.
There are of course loopholes and/or legitimate reasons why paying tax could be avoided on this supplementary income, but this obviously needs to be done through the correct channels and not via stuffing £100 in your back pocket and saying nothing.
Last edited by theeldergeek; 26th May 2010 at 08:50 AM.
Last edited by theeldergeek; 26th May 2010 at 08:32 AM.
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