A self employed client in an unrelated field received £2000 in one tax year in many payments for house sitting, this source of income ceased in the subsequent tax year. Would the house sitting income need to be returned on the self assessment return.
Related resources
Replies (13)
Please login or register to join the discussion.
"Would the house sitting income need to be returned on the self assessment return?"
Can you provide us with *any* thoughts as to why/when it wouldn't need to be?
Person provides service for reward. Is that oversimplifying the arrangement? Why would it be tax-free income?
I was thinking exactly the same about images supplied to a prominent BBC employee a couple of weeks ago.
I was thinking exactly the same about images supplied to a prominent BBC employee a couple of weeks ago.
Was there doubt ?
Devil's Advocate here-Cautiousman would not have even known about it if his client wasn't Self Employed and in SA. How would it have been treated then.
This is the Black Economy in play.
My hesitation about reporting the house sitting income and hence the reason for posting this , was that the recipient regarded the income as compensation for doing a favour for a friend, as they had to uproot their self from their own home , rather than a trade, and never considered it as a taxable service .
One concern with that thought is that the friend apparently made multiple payments throughout the year to your client, these possibly night be interpreted as payments for an ongoing service. If they are each of similar quantum per period covered that would certainly reinforce the view that they are payments for services rendered rather than a string of gifts.
… the recipient regarded the income as compensation for doing a favour for a friend, …
You don’t typically get compensated for doing a favour. Certainly not to the tune of £2,000.
My hesitation about reporting the house sitting income and hence the reason for posting this , was that the recipient regarded the income as compensation for doing a favour for a friend, as they had to uproot their self from their own home , rather than a trade, and never considered it as a taxable service .
Yeah, I found that I had to uproot myself from home when I went to work.
Still didn't regard it as compensation, though.
Thank you all for your input, I will advise that the source is disclosed on the self assessment
Just for the avoidance of doubt ... the "source" is not the important fact to disclose, it's the "income" that needs to be reported.