Tax question

[spongebob59]

Having been made redundant at the beginning of the year HID has just taken on a part time job to get some income, around 9K per annum.

What does she need to do ?
It's below the tax threshold but does it still need to be declared in some way ?

 

[GreiginFife]

If she is a PAYE employee the she doesn't need to do anything. Her employer will deduct any applicable tax (in this case, none) and NI along with any pension.

If she is not PAYE (day rate of any sort or sole trader) then she would need to submit a Self Assessment and pay the applicable tax after declaration (in this case, none) and any applicable NI.

 

[spongebob59]

If she is a PAYE employee the she doesn't need to do anything. Her employer will deduct any applicable tax (in this case, none) and NI along with any pension.

If she is not PAYE (day rate of any sort or sole trader) then she would need to submit a Self Assessment and pay the applicable tax after declaration (in this case, none) and any applicable NI.

Thanks

 

[Bunkermagnet]

At £9k, shes unlikely to pay any tax or NI if that is all her income.....
That will create gaps though in her NI record which could well affect what state pension she might get.

 

[Ross61]

At £9k, shes unlikely to pay any tax or NI if that is all her income.....
That will create gaps though in her NI record which could well affect what state pension she might get.

You only need to earn above the lower limit for National Insurance which is roughly £6400 to be credited with a full year of NI contributions despite not paying any NI until you earn above the personal tax threshold £12570 for most people.

 

[Ross61]

Having been made redundant at the beginning of the year HID has just taken on a part time job to get some income, around 9K per annum.

What does she need to do ?
It's below the tax threshold but does it still need to be declared in some way ?

If she isn’t paid by PAYE declare it as she will be above the NI lower threshhold which is about £6400 to get a years full credit without actually paying any