Declaring Online Earning Income?

Daddybear85

Merlin's_Beard wrote: »

After several false starts, it has very quietly made it into law as the Finance (2) 2017 Bill here: http://www.legislation.gov.uk/ukpga/2017/32/contents/enacted

I suspect the Government drawing attention to it would only draw attention to the fact that they failed to do it the first time around!

Cheers Melin's beard


I had heard of this but not sure where in it it states the £1000 limit or how it works.

antrobus

Daddybear85 wrote: »

Cheers Melin's beard


I had heard of this but not sure where in it it states the £1000 limit or how it works.

It's in Schedule 3.

There is an explanation of the trading allowance here.
https://www.accountancyage.com/2017/10/09/new-trading-allowance-simplicity-not-know/

Merlin's_Beard

Daddybear85 wrote: »

Cheers Melin's beard


I had heard of this but not sure where in it it states the £1000 limit or how it works.

It states it here in the Bill

Specifically:

This Chapter gives relief to an individual on—
(a)the income of a relevant trade (see section 783AA), and
(b)miscellaneous income (see section 783AB).
(2)If the individual qualifies for full relief (see section 783AE), the individual’s relevant income (see section 783AC) is not charged to income tax (see sections 783AF and 783AG).
(3)If the individual qualifies for partial relief (see section 783AH), the individual’s relevant income is calculated by alternative methods (see sections 783AI to 783AK).

783ADThe individual’s trading allowance
(1)For the purposes of this Chapter, an individual’s trading allowance for a tax year is £1,000.
(2)The Treasury may by regulations amend subsection (1) so as to substitute a higher sum for the sum for the time being specified in that subsection.


And in plain English:

So, the first £1,000 you make through miscellaneous income does not have to be declared, at which point it is not subject to income tax. Should you make more than £1,000 you should declare.

This doesn't include anything extra through your normal employment (so, bonuses are still taxable)

Note, this is voluntary so if you do declare anything under £1000 it probably will get taxed!

diamondflag66

I have recently signed up to a couple of online paid surveys sites. Do I need to declare this income? It is only going to be £20 a month at the most. I am confused after reading about the trading allowance which is "a tax exemption of up to £1,000 a year for individuals with income from:
self-employment
casual services, for example babysitting or gardening
hiring personal equipment, for example power tools
If your annual gross income from these is £1,000 or less, you won’t need to tell HMRC."

tykesi

diamondflag66 wrote: »

I have recently signed up to a couple of online paid surveys sites. Do I need to declare this income? It is only going to be £20 a month at the most. I am confused after reading about the trading allowance which is "a tax exemption of up to £1,000 a year for individuals with income from:
self-employment
casual services, for example babysitting or gardening
hiring personal equipment, for example power tools
If your annual gross income from these is £1,000 or less, you won’t need to tell HMRC."

I'm not sure how that's confusing. If you earn less than £1000 extra from sidelines or casual earning you don't need to declare. I think the wording is clear enough.

diamondflag66

What I am confused about is why so many people say that you do need to declare for online surveys when it says that you don't. Also did the new rules (trading allowance) go through or not?

droopsnoot

I hadn't realised until another poster pointed it out that this trading allowance now does seem to be part of the finance act. I suspect many others are in the same position, which would account for some of the advice being wrong.


ETA - have a read of this thread for some more information: https://forums.moneysavingexpert.com/discussion/5751884

Merlin's_Beard

diamondflag66 wrote: »

What I am confused about is why so many people say that you do need to declare for online surveys when it says that you don't. Also did the new rules (trading allowance) go through or not?

Because it only became law about two weeks ago. If you're searching anything older than that, then they would have been correct at the time.

diamondflag66

Thanks, I didn't know that since its not been widely reported that this new finance act had been made law.

scaredofdebt

At last a sensible law that helps out "normal" people!