Tax question

[TDI]

My mate has asked me to do a bit of work for him and agreed to pay me with a cheque. I'm employed fulltime so wanted to know if i have to declare that or is there a set amount that you don't need to declare before? Hope that makes sense

Cheers :-/

 

[jojo]

Unless you are writing a VAT receipt for him/his company to declare, what is it exactly do you need to declare to deposit a cheque into your account? I'm presuming the money/cheque is money that he's earn't and already been taxed, he can do whatever with it he likes imo.

 

[A3-frankie]

shouldnt worry about declaring anything like that. If you sell something on ebay and cash a large cheque nobody cares where the money came from.
If maybe u were regularly cashing large cheques and it appeared to be a steady income for a long period of time then suspicions may be raised over matters such as tax.

 

[TDI]

Cheers guys,

I was thinking that the tax man might knock on my door and say you didn't declare that cheque from your mate, which his company have put on their books as paid to you, if you get what i'm saying?

Cheers

 

[batwad]

Strictly speaking, it's income so should be subject to income tax. However, if you're on PAYE with your employer then I don't believe there's an easy way to declare this extra income. If you do your own tax returns it's another matter.

In reality you can probably get away with cashing the cheque on the sly. I'm sure we've all sold cars and had large dollops of cash go into our bank accounts that could be construed as income with no questions asked.