Savings and Investments thread

golfaddick said:

LargeAddick said:

The above is the sort of thing I'm looking to avoid. Since retiring in June 2022 I've been returning to the firm on an ad hoc basis to cover for my successor when he's been on holiday/ill. Last tax year I earned about 4k and after using part of my tax free allowance paid about £400 tax. I am paid through the company payroll so taxed at source.

On 1st April the firm were bought out. The new firm still want me to help out but want me to invoice them for any hours worked and not put it through the payroll meaning I'm liable for reporting it to HMRC. I'm dead against that as once I start doing so won't HMRC want me reporting quarterly under the new making tax digital reporting. And once I start doing that I'm worried I'll be stuck doing that for life. I'm happy having all my income taxed at source and don't want the hassle. I'm also not sure why the firm can't or won't put it through the payroll. They have a number or part time staff and I'm just part, part time. Think I'll avoid the hassle and just jack it in.

Making tax digital only comes in this tax year (26/27) for those with net profit in excess of £50k. It then comes in next tax year (27/28) for those with net profit in excess of £30k. 

If you earn under £10k you wont be affected for a good few years yet.