Working after you've retired

Discussion in 'Off-Topic Discussion' started by Jungle Jane, Mar 18, 2014.

  1. Kristen

    Kristen Under gardener

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    If "you" are going to declare it then "you" will pay tax on it, and national insurance ... so might not work out as a good deal (as father has a tax allowance which can be used up)?

    Now your father is retired he doesn't have to pay NI ... so, I presume?, any money he makes, if that is below tax threshold, has no other tax liability. I don't know whether he is supposed to declare it, self assessment, and then not be required to pay any tax - but that would be a right palaver (although you could do that bit for him) - but even if the tax man came after him the worst his offence could be would be not submitting a self assessment, as no actual tax would be due.

    I can't see a printer snitching on him - nosey neighbours are the ones likely to do that. But if he is doing what he always has, i.e. no change in circumstances, then neighbours aren't going to think "He was on the DOLE and now he is working, I'll tell tax office" - so long as he doesn't mention it to them either!

    If people are paying him cash, and tax IS due, then I believe the revenue will go after them (for not putting PAYE in place) rather than HIM (e.g. the scenario where MP's having been employing Au Pair etc. and paying them cash, then it is the MP/employer that gets into trouble, rather than the employee). Anyway, moot point, he isn't anywhere near the tax threshold.
     
  2. Scrungee

    Scrungee Well known for it

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    What about mad neighbours? http://gardenerscorner.co.uk/forum/threads/my-mad-parents-and-their-mad-neighbour.60943/
     
  3. Kristen

    Kristen Under gardener

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    Yeah, they did cross my mind.

    "Don't tell anyone about your work, and don't park on their drive either" :heehee:
     
  4. Jack McHammocklashing

    Jack McHammocklashing Sludgemariner

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    Personally, I would not risk it, though be upfront, go into the tax office for advice

    HMRC have a VERY large team, who spend full time on facebook and ebay seeking out undeclared incomes, one or two items OK. Regular sales on ebay, or cake makers on facebook are easy meat
    If over 65 then any income other than state pension over £1365 must be declared
    which has its own penalties
    If you have registered, then even if you make nil profit you must file a nil return before the end date, fine is £100 then £100 for each day after until completed

    Even people within families grass sometimes Jealousy,Envy,Spite ?

    Jack McH
     
    • Informative Informative x 1
    • shiney

      shiney President, Grumpy Old Men's Club Staff Member

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      I think that just carrying on doing a little bit of gardening for cash will not be a problem - even if you have nasty neighbours. It's quite easy to play the 'old pensioner that doesn't understand things' ticket.
       
    • JWK

      JWK Gardener Staff Member

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      I'd declare it for peace of mind. It wouldn't take long, a simple spreadsheet (or just handwritten in a book) showing cash taken (income) and expenses taken off. I made around £3k one year on ebay, but after taking off all the expenses, postage, travel to PO and buying the stuff in the first place I had not made enough profit to pay any tax.

      I have worked as a contractor for years (effectively self-employed) and have been randomly selected for HMRC visits a few times, they come to check all my invoices, bank statements, PAYE and VAT records. It's not something I enjoy so keeping everything whiter than white is best.
       
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      • Hannah's Rose Garden

        Hannah's Rose Garden Total Gardener

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        I ran a tiny domestic cleaning company before I got preg. I informed tax man , ni and got basic insurance. I could then build a website , get cards and advertise. I'm still getting two or three queries a week. So I'd agree there's no harm informing tax office. By the time u take off costs of equipment etc doubt he's making a profit if on a small scale
         
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        • shiney

          shiney President, Grumpy Old Men's Club Staff Member

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          I think he would not be able/want to cope with the paperwork - although it's simple. He would need someone to do it for him.

          I ran the accounts for seven one person businesses (very P.C. :heehee:) until I had trained them in how to do it. Some people just don't have the confidence to do it themselves.
           
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