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Trying to help a family member

Simple scenario but I'm years out of date in tax

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A family member has asked for my assistance with his affairs and I would be most grateful for helpful comments please.

He has employment income of around £6,000 per annum and has self-employed turnover/profits of around £2,000 per annum. No other income sources. The self-employment consists of a single piece of work lasting around 3 weeks (covering for a holiday). It is likely that this pattern of income will recur each year with earnings broadly the same. He has no desire to pay NIC but will if he must.

Does he have to register for self assessment? 

I would have thought yes, but as there's no tax liability, is there an obligation to notify?  Some years ago, registering as self-employed was necessary and then a Class 2 small earnings exception could be made so that no NIC liability arose. Is that still necessary now that Class 2 is part of self assessment?

Just as an aside, if self employment income were less than £1,000, would that make a difference to your answers given the trading allowance? In other words, can taxpayers simply ignore self assessment, or do they have to register and then tick a box on the self employment pages?

Many thanks in anticipation. 

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By Tim Vane
10th Jun 2019 12:46

No tax liability and no NIC liability so no requirement to notify. No requirement to notify so no tax return will be issued. Trading allowance makes no difference in this case.

If HMRC issue a tax return anyway then they have to complete it, but there is no onus on the taxpayer to notify when there is no liability.

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