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The £1000 trading allowance

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Midas
Midas Posts: 597 Forumite
Part of the Furniture 500 Posts Combo Breaker
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.
Midas.

Comments

  • 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?
  • Midas
    Midas Posts: 597 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    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.
  • Pennywise
    Pennywise Posts: 13,468 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Midas wrote: »
    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.
  • Midas
    Midas Posts: 597 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Pennywise wrote: »
    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.

    Ah, I see. No I would not be being paid by my employer or an associate of theirs.
    Midas.
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