Do you have earnings beyond your main job?
One side effect of the pandemic has been an increase in people creating other sources of income to supplement their earnings. Often such ‘side hustles’ are regarded as self-employment and outside the PAYE system that applies to employees’ earnings. However, they still generate income on which you may need to pay tax and National Insurance.
If the extra income is not more than £1,000 gross a tax year, then it may be tax-exempt thanks to the trading allowance. If your additional earnings are more, then you must tell HMRC and pay any tax that is due. You might still be able to benefit from the trading allowance.
Either way, make sure you keep records and do not think you can hide the income from HMRC.
If you would like to discuss the above with one of our experienced financial planners, please get in touch here.
The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.