How do I declare extra income to the HMRC when I've always been on PAYE?

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Oct 2016
4:29pm, 26 Oct 2016
9,661 posts
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My new employer has told me to invoice her for my time rather than her putting me on the books.

This is for a few reasons - I'm acting in a sort of 'consultant' role, I'm very unsure about the job, and she knows I have a lot of other commitments so may not be able to do 'regular' hours.

I have been asked to do this once before, but as a general rule, chefs are not self-employed and I felt the previous employer was trying to stitch me up!

I'm actually quite comfortable with this arrangement this time, as it suits me too and will allow me to be more flexible and duck out of working regular weekends and give me plenty of time to train.

The problem is, once I've invoiced her, and have been paid, how do I declare it to the tax man? I want everything to be above board. I'm assuming however, that it's going to be quite complicated and a total pain in the @rse!

Can some please tell me/explain/point me in the right direction on this?
Oct 2016
5:06pm, 26 Oct 2016
4,010 posts
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Call HMRC and explain you'll be self employed for a while. They'll ask you to do a tax return at the end of the tax year & will calculate your tax liability then. You'll have until 31/1 the following year to pay. You'll need to pay your National Insurance Contributions (NIC) as you go tho. Again HMRC will be able to advise how you do this.

You have to wait a while for the HMRC helpline but once you're through they're usually very helpful & understanding.
Oct 2016
5:43pm, 26 Oct 2016
26,255 posts
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It is actually pretty straightforward. You need to register as self-employed, you can do this on-line.
Then you need to keep a record of your income and outgoings (copy invoices, receipts, etc.) and then do a tax return at the end of the tax year. Depending on how much you earn you'll probably want to save an amount from each invoice so that you have the money available to pay any tax due at the end of the year. HMRC have lots of info on line and are helpful if you give them a ring

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Maintained by Liliaicha
My new employer has told me to invoice her for my time rather than her putting me on the books.


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