Confused

[stevebow]

I know this is the wrong forum but im hoping someone could clarify this for me.

My wife is here on a 2 yr settlement visa and is currently working 2 days a week in a friends shop cutting hair, she pays the lady a percentage of the money she makes and this covers the cost of renting a room. My wife only ever makes 80 pound per week max. Should she be declaring this to pay tax etc?

Confused.

Steve

[the scouser]

I'm no tax adviser, but from what I can recall from a similar recent thread, it's to your wife's advantage to make a declaration, even if it's a nil return, as she'll get NI credits which count towards unemployment benefit/state pension qualification.

However, as she is essentially self-employed, she should have declared this to HMRC within 3 months of establishing herself or face a £100.00 fine. If she does inform HMRC that she is self-employed, she will be expected to pay contributions of £2.10 per week and then a further 8% of any profit over approx £5200.00 p.a. Income tax is levied additionally and is generally also not payable until about the £5200.00 p.a. mark.

Scouse.

[torrenova]

My expereince with the UK authorities from tax to VAT and all in between is to tell them nothing. Sure, be aware of the rules but once you open the box, you'll never get the bloody lid closed again.

[mrbojangles]

Although you are quite right about the tax man, torrenova. I've been trying to close my lid for a while now.

There are also benefits to be had, especially if only paying the minimum National Insurance payements, pensions for example. It's also wrong if for example they are claiming child benefit. Other people are paying into the pot as well.

[stevebow]

Well i have rang the tax office today and ive been told my wife must register as being self employed, which is fine but it aint half a lot of aggro for a couple of hours work on a saturday. Suppose its more info for the next visa application anyway.

Thanks for the advice anyway.

Steve