Low Income - Self Assessment Required?

Low Income - Self Assessment Required?

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Sorry, just being lazy really. Client with property income has informed me that his wife has started working about 5 hours per week for the local pre-school at minimum wage. No other taxable income (except possibly about £1 interest income). Does she need to set up as self employed (she doesn't get a payslip therefore presumably not being dealt with through PAYE) and complete a self assessment tax return under these circumstances as clearly no tax will be payable unless her circumstances change significantly? Just called HMRC's agent helpline and they suggested she DOES need to register. Isn't this a waste of everyone's time here? Surely some way of avoiding this??

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By neileg
07th Jul 2014 09:42

Strange question

The facts aren't strange, I just don't understand any accountant in practice needing to ask the question.

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By sparkler
07th Jul 2014 09:54

Not employed?

It sounds to be as though she is employed by the pre school. I do the accounts and payroll for several pre schools. and all staff (even temporary bank staff) are employed and on the payroll. Pre school assistants often only do a few hours work each week, but just because the hours of work are low, this doesn't mean that she isn't employed.  I cannot imagine how a pre school assistant could be anything other than employed, so she needs to speak to whoever does the payroll at her pre school and make sure she is added to the payroll and paid under PAYE.

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