Is Trading Allowance in addition to Personal Allowance?

camelopardis

I'm currently 53 and receiving £11,850pa pension income (up to my personal allowance).
Yes, yes - I know - but I have a protected retirement age

Right now, I have no earned income. However, I am thinking of starting an ebay trading business and registering as self employed. Gross profit would be under £1000pa, and even though I'm not required to, I would declare this on a tax return (using the new £1000 trading allowance) so that I can pay VOLUNTARY Class 2 NICS.


Is the Trading allowance in addition to the personal allowance? So any income from my self employment (up to £1000) I wouldnt pay tax on?

Pennywise

camelopardis wrote: »

Is the Trading allowance in addition to the personal allowance? So any income from my self employment (up to £1000) I wouldnt pay tax on?

Yes, correct

00ec25

correct, however I'll take issue with your use of "gross profit".

the allowance is against income, not gross profit. It is therefore correct to refer to turnover, not gross profit, since GP is the amount left after you have deducted cost of sales. The allowance is for total/gross income without any deductions at all.