My friend she is working as part time and her company deduct all tax and NI before they pay to her but on her spare time, she is trying to do some extra work and she has found 6 Hours in a month with minimum wages working for Charity organization and they ask her to send an Invoice the Hours she worked and she will be liable to pay all her Tax and NI. But my question is does she have to let HMRC that she is working for extra 6 Hours and does she have to submit her income to HMRC at the and of the year ? and how she layout her Invoice as freelance ? or can she use her name on an Invoice to get paid .
for any advice will be appreciate and thank you an advance
Given the low amount that she will be receiving over the course of a full year, I would be tempted to phone HMRC and advise the amount - they can arrange to collect it through her tax code, via her first job. They will probably ask for a letter of confirmation and will ask for an update each year, or at the very least when it changes, so that they dont under or over charge her. She will need to remember to tell them the minute she stops working for them. Yes the invoice can be in her personal name. Remember to keep copies of all paperwork in line with HMRC guidance timescales.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
That would have been my suggestion as well. Although technically she is self employed, it would be daft to register for the sake of £468. You must let HMRC know though, otherwise they would view it as tax evasion.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
