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The £1000 trading allowance
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Midas
Posts: 597 Forumite


in Cutting tax
I have a question regarding the £1000 trading allowance introduced by George Osborne from 2017/18 onwards.
I work full-time and pay tax via PAYE. If I were to earn some additional income (less than £1000) from publishing (e.g. the occasional article) would this be exempt from tax thanks to this 'trading allowance'? I understand that the trading allowance can be used against 'miscellaneous' income but I am struggling to find a clear definition of what this does or does not include.
Second question: if such income from publishing is indeed exempt, if I was to earn over £1k from this activity would it ALL become taxable, or just the element over £1k?
Thanks in advance for any insight.
I work full-time and pay tax via PAYE. If I were to earn some additional income (less than £1000) from publishing (e.g. the occasional article) would this be exempt from tax thanks to this 'trading allowance'? I understand that the trading allowance can be used against 'miscellaneous' income but I am struggling to find a clear definition of what this does or does not include.
Second question: if such income from publishing is indeed exempt, if I was to earn over £1k from this activity would it ALL become taxable, or just the element over £1k?
Thanks in advance for any insight.
Midas.
0
Comments
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In the example given on the HMRC manual here https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim86072 , they cite the example of a PAYE employee who provides dog walking services during weekends and earns a few hundred quid a year, this qualifies for the allowance.
That being the case, casual income from publishing, your blog, etc *should* count as misc income I guess, but I might be wrong!
Is the publishing/ocassional article that you do in any way related to your work?0 -
Retired_Mortgage_Adviser wrote: »In the example given on the HMRC manual here https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim86072 , they cite the example of a PAYE employee who provides dog walking services during weekends and earns a few hundred quid a year, this qualifies for the allowance.
That being the case, casual income from publishing, your blog, etc *should* count as misc income I guess, but I might be wrong!
Is the publishing/occasional article that you do in any way related to your work?
Yes, the publishing/occasional article I could potentially write in return for a fee would relate to my work in that it would be on a subject I deal with in my full-time job. I would though write it in my spare time. I suppose my question is driven by a calculation about whether it is worth investing my time to do this extra work (if I can earn the extra tax free it probably is, but if I must pay 40% of the fee in tax it probably isn't).Midas.0 -
Yes, the publishing/occasional article I could potentially write in return for a fee would relate to my work in that it would be on a subject I deal with in my full-time job.
It's more whether it's related to your employer that matters, i.e. whether you are paid by your employer or an associate of theirs for the publishing work.0
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