Money Lesson Single

When does a side hustle need declaring?

A teacher of 31 turns tutoring work away, because he is sure that once he crosses the £1,000 line the tax and the paperwork will eat most of it. What is the extra weekend work actually worth once every penny of tax has been paid?

Employment Self Employment Expenses Savings Account

Take the work

1 Goal

Tutor most weekends, about £4,000 a year, cross the Trading Allowance, and file the return.

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Employment Self Employment Expenses Savings Account

Keep it under the allowance

1 Goal

One pupil, about £960 a year, deliberately just under the line.

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Take the work Keep it under the allowance

Taking the extra weekend work, and paying every penny of tax it attracts, leaves you ~£66.3k better off than keeping it small enough to ignore.