Do I need to declare £600 a year income?

13
Found 27th FebEdited by:"WestMidlands"
Hi

I'm a University student and as part of my studies, I have learnt some ways of earning a small income (more a of a hobby).

I sometimes sell some software I write, which brings in about £300 every six months. Which is £600 per year.

Do I need to declare this to the government, if so how do I declare it?

How much tax would I have to pay on this?

Note: This is the only 'earning' income that I have. My other living comes from scholarships, and this isn't considered income as it is educational grants.
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I doubt you would need to , it is less than 11500 a year which I believe is *roughly* the minimum amount needed to be earned annually to pay tax upon
you should declare all I believe but you wont pay tax until 11,500 per year
doesn't look like it from the following link

gov.uk/sel…urn
I think it's 2900 or 2600 per yer or more needs declaring under this doesn't.
Original Poster
MynameisM27th Feb

I think it's 2900 or 2600 per yer or more needs declaring under this …I think it's 2900 or 2600 per yer or more needs declaring under this doesn't.


So I can safely deposit up to say £2600 per anum cash in to my bank account? without issues?
mutley116 m ago

doesn't look like it from the following …doesn't look like it from the following linkhttps://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return


Sorry must been 2500 got mixed up with something else.
WestMidlands3 m ago

So I can safely deposit up to say £2600 per anum cash in to my bank …So I can safely deposit up to say £2600 per anum cash in to my bank account? without issues?


Not sure where your going with that one. U still supposed to ring there helpline it's very weird doesn't make sense.
Original Poster
MynameisM15 m ago

Not sure where your going with that one. U still supposed to ring there …Not sure where your going with that one. U still supposed to ring there helpline it's very weird doesn't make sense.


I just want to get everything right, I will call them
WestMidlands17 m ago

I just want to get everything right, I will call them


If you are concerned, then it is best to call them and speak to them. They are a decent bunch and are very helpful. Not at all scary. Ask for the name of the person when you finish your conversation if they say don't worry about it as then you can quote that person and that conversation if they later on ask you about your income.

It is unlikely anyone will ask if you put a few grand in your bank account every year but they will only do so, if anything else you do may raise a question and bring your activities to your bank's attention as they have to report suspicious activities of their account holders to HMRC under law.
Ok I didn't see ur full post. In regards income tax the first threshold is 11500 for this year. And next year will go to 11850. Under this there's no tax buy u need declare the income over 2500 and best to ring the helping if less than this. There's NI contributions aswell the rates for these start at lower the the tax thresholds ask them helping about this.
No you don't its classed as pocket money as its a small amount
Don't take advice from the various "old wives' tales" posters above. If you are trading, you are required to register as self-employed and declare your accounts for the year, even if your earnings are negative (i.e. you make a loss).

Of course, lots of people don't.

At £600 a year, you won't pay any tax or NI. If you have any money in interest-bearing accounts, you'll instead likely get a few quid refunded for any tax you paid on the interest.
I would be inclined to think this is more "hobby" than employment and therefore wouldn't need to be declared.

For example, if I buy a broken car, fix it and eventually sell it on, I won't be paying tax on it or declaring it as an income, because that isn't my employment and (potentially) earning money is a side effect.

If I setup a business restoring cars, however, then it would need to be declared.

That's my 2p anyway.
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