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A client, who was not previously in business, has carried out a single piece of work to refurnish part of a house and has been paid a commission. The work is probably a “one-off” and the income is less than the personal allowance. Could this result in a Class 2 National Insurance liability and possibly a penalty charge?
Our client’s wife has advised us that she was asked by one of her friends to assist with the refurnishing of part of the friend’s house. The friend was subsequently entertaining her own friends and one of them was so taken with the redecorations done by our client’s wife that she commissioned her to organise a similar scheme at her own home.
This second project took place over two months just before the end of March 2013. Our client’s wife acted as principal and paid the suppliers being paid in turn by the friend of the friend. The venture returned a profit of £7 500 for our client’s wife. Our client’s wife had not previously completed a tax return because she has no other income.
While the venture which has not been and probably will not be repeated would not appear to attract a tax liability...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
