From: "Doug Ramage" 
Newsgroups: uk.finance
Subject: Re: "Income"
Date: Tue, 17 Aug 2004 09:20:51 +0100


"Alec"  wrote in message
news:41214513$0$20246$cc9e4d1f@news-text.dial.pipex.com...
>
> "Si."  wrote in message
> news:cfr3h6$6ah$1@thorium.cix.co.uk...
> > I fixed a colleagues computer - they offered me money for doing it, but
I
> > declined - but they gave me £5 "for a drink". These favours are starting
> to
> > become a little more regular as word gets round work.
> >
> > At what stage does income become taxable? If I had accepted money as
> payment
> > for fixing the PC - I guess I would have to declare it to the Inland
> Revenue
> > and pay tax on it, however a £5 gift - I guess that does not have to be
> > declared.
> >
> > I am PAYE at work and I don't currently receive a self assessment form.
> >
> > Am I right? Is there a limit on how much I can earn before I have to
> declare
> > it?
> >
> There is no set amount. Even £1 is a taxable income. For any payment to
> count as a gift, it must be unrelated to any work you've performed (e.g.
> birthday, wedding, retirement etc). There are certain exemptions, e.g. a
> small gift for suggesting a good idea to your company, if it's open to all
> staff.
> You should keep a record of any work performed and payments received, and
> make an annual declaration to your tax office. If the tax liability is
small
> (say £200-300), it will be deducted by adjusting your code.
>
> Alec
>
>

Any legitimate business expenses can be deducted from this source of income,
and only the net figure is taxable.
--
Doug Ramage

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