Anonymous
Anonymous asked in News & EventsCurrent Events · 2 months ago

UK/London - Question about P45 / Tax / National Insurance / Cash in Hand work?

(Q1)

I have a friend who is running her own charity from home. She provide poor families in London with cooking classes and healthy eating on a budget. She hires her sister to come in once or twice a week to do some Admin work for her and she pays her sister £40 - £60 depending on how many times she comes into work every week and how many hours she does.

Would my friend have to let HMRC know about that cash in hand money?

She pays her sister £200 per month or sometimes less. Her sister doesn’t claim any benefits and has not been working for 15 years.

Will she have to let HMRC know?

How much does she have to be earning to pay N.I & Tax ?

(Q2) My friend wants to expand the charity and provide extra hours for her sister. But unfortunately her sister does not have a P45. She fell out with her boss and he did not provide her with a P45 and it’s been 15 years since she’s been working. Also the company she worked for doesn’t exist anymore. She has to fill out a PAYE form.

The form has 3 options

A---This is my first job since 6 April and I’ve not been receiving taxable Jobseeker’s Allowance, Employment and Support Allowance, taxable Incapacity Benefit,

State Pension....

Update:

B---This is now my only job but since 6 April I’ve had another job, or received taxable B Jobseeker’s Allowance, Employment and Support Allowance or taxable Incapacity Benefit. 

C---I do not receive a State or Occupational Pension. As well as my new job, I have another job or receive a State or Occupational Pension.

Which one does she pick? 

Update 2:

(Q3) My friend wants to set up Payroll. We had a look at the Gov.uk website that provides a list of Payroll softwares to use. If you know anything about payroll softwares then which one would you recommend to use? Currently there is only 5 people working for her Charity now. 

Update 3:

@Tavy I am asking this because I didn’t get enough answers. Nobody is forcing you to answer so stay off my questions !

3 Answers

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  • Anonymous
    2 months ago

    You might quit asking this -people can and do, do mean things

    if you irritate them.

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  • Maxi
    Lv 7
    2 months ago

    As previously said when you last asked, your 'friend' is legally obligated to register with the charity commission and product annual returns for them and HMRC, legally your 'friend' has to declare all and any incomings and outgoing regardless of if money paid is casual or not, regardless of if it is PAYE, self employed/casual  or volunteer AND your 'friend' also has to have the correct employment insurance and income earned reagrdless of if it is cash in hand also have to be legally declared by the person getting it......... each person gets a personal allowance of £12,500 before they pay income tax, but it still has to be declared......as your 'friend' would know if they really were "running a charity"

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  • Clive
    Lv 7
    2 months ago

    What does this have to do with travel?

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