***VERY IMPORTANT*** What you need to tell HMRC

alditoharrods

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Last week I came across a blogger, who accepts at least one sponsored post a week, openly declaring that she didn't tell HMRC about her extra income because she "didn't know how to". Unfortunately, when it comes to declaring your extra earnings, ignorance is bliss, and not knowing about it isn't enough of an excuse.

I found a brilliant calculator that tells you how much tax, National Insurance and student loan repayments (if applicable) you need to pay. It is http://www.employedandselfemployed.co.uk/tax-calculator

Getting registered is really, really simple and you can do it in a few minutes. Just go to https://online.hmrc.gov.uk/registration/newbusiness/introduction and register (you'll see it referred to as a business, don't worry, you can later select individual in the sign up process). You'll then need to register to do self assessment online (http://www.hmrc.gov.uk/sa/register.htm) and you'll need to do that every year and pay whatever you owe.

I hope you find this useful. I published a post about this which goes into it in more detail, including some information on offsetting your costs: http://fromalditoharrods.com/declaring-extra-income-to-hmrc/
 

Jon

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alditoharrods said:
Last week I came across a blogger, who accepts at least one sponsored post a week, openly declaring that she didn't tell HMRC about her extra income because she "didn't know how to". Unfortunately, when it comes to declaring your extra earnings, ignorance is bliss, and not knowing about it isn't enough of an excuse.

I found a brilliant calculator that tells you how much tax, National Insurance and student loan repayments (if applicable) you need to pay. It is http://www.employedandselfemployed.co.uk/tax-calculator

Getting registered is really, really simple and you can do it in a few minutes. Just go to https://online.hmrc.gov.uk/registration/newbusiness/introduction and register (you'll see it referred to as a business, don't worry, you can later select individual in the sign up process). You'll then need to register to do self assessment online (http://www.hmrc.gov.uk/sa/register.htm) and you'll need to do that every year and pay whatever you owe.

I hope you find this useful. I published a post about this which goes into it in more detail, including some information on offsetting your costs: http://fromalditoharrods.com/declaring-extra-income-to-hmrc/

I call BS on that. I cannot believe that someone that blogs or earns money online (Not talking about just amazon paying vouchers here) doesn't know they need to register with HMRC and pay tax on their earnings.

Like you said, ignorance can't be used as an excuse
 

Darcey

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alditoharrods said:
Last week I came across a blogger, who accepts at least one sponsored post a week, openly declaring that she didn't tell HMRC about her extra income because she "didn't know how to". Unfortunately, when it comes to declaring your extra earnings, ignorance is bliss, and not knowing about it isn't enough of an excuse.

I found a brilliant calculator that tells you how much tax, National Insurance and student loan repayments (if applicable) you need to pay. It is http://www.employedandselfemployed.co.uk/tax-calculator

Getting registered is really, really simple and you can do it in a few minutes. Just go to https://online.hmrc.gov.uk/registration/newbusiness/introduction and register (you'll see it referred to as a business, don't worry, you can later select individual in the sign up process). You'll then need to register to do self assessment online (http://www.hmrc.gov.uk/sa/register.htm) and you'll need to do that every year and pay whatever you owe.

I hope you find this useful. I published a post about this which goes into it in more detail, including some information on offsetting your costs: http://fromalditoharrods.com/declaring-extra-income-to-hmrc/

Thanks for the calculator, I'm self-employed and do my own Self Assessment each year and have never quite known how to estimate my net earnings so hopefully it will come in handy.

For the employed there is also mranchovy.co.uk calculator. Which also tells you your net hourly, daily, monthly and annual rates. I think it may also calculate from net to gross or that could be another one.

:)
 

ted

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I'm aware that earnings from AdSense, mystery shopping etc is work and need declared

I read someone saying before that Swagbucks etc aren't classed like that. It's very noticeable that they use the term gift card or prizes even referring to Paypal.
 

Flitterbug

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I'm just looking into re-registering as I was before with face painting I just needed to find my old UTC which I have now... It's asking me if I want to apply for Small Earnings Exemption certificate but I'm not sure how much I'm going to earn. Last time with my face painting it was just a small thing so knew I needed to apply for SEE, this time I would hope that I will be earning more than the threshold.

So what I'm asking is: Is it better to apply for SEE now or later?
 

The Funky Blue Dog

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Personally speaking, I've always kept up self-employed NI contributions even during lean times - just for the peace of mind of having a complete record of continuous contributions towards the state pension. I've been eligible for the exemption at times, but haven't taken it up.

Others may have a different opinion though
 

caledonia1972

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I have always paid my NI contributions too. Not for the pension entitlements at all, but for maternity allowance. My £3 a week or whatever it was allowed me to claim £120 in Maternity Allowance when I had my third baby.

Ignorance is no defence when it comes to not claiming, its SO simple to register and even filling the tax form isn't that hard.
 

Jon

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I would agree it is easy to fill in..

I have done it for a good number of years now so its just second nature

It is easier now that I only really work for 2 or 3 companies as oppose to a few years ago when I was adding figures up from multiple sources of income
 
Q

queen81

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I am already self employed. So do I need to actually inform them I now work for other companies as well or do I just need to include it on that self assessment thing you fill out?
 

Jon

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You wouldn't list the companies no, you would just include the numbers in your total
 

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