Trading allowance not applied?

bring_back_threepenny_bit

Hi
Currently filling in my tax return, my main income is a pension which is taxed at source. A few years ago I registered as self employed and did some online trading to supplement my income and I made use of the 1k trading allowance. I ended my self employment but have continued selling in a casual way, earning under 1k in 2020/21. However on inputting the figures I find HMRC calculates I have to pay £168 tax, which seems to be 20% of my earnings of £842. How do I get the allowance applied, or will I have to reclaim it afterwards?
thanks

Dazed_and_C0nfused

The only way to claim it afterwards would be to amend the return you are currently completing.

What part of the return are you including the £842 on?

The most likely pages are,
Self employment

Partnership
Employment
Other income

bring_back_threepenny_bit

Thanks. The income was recorded as Other Income which seemed to be the only place to include it. 

Dazed_and_C0nfused

I don't think you can claim the trading allowance against other income.

If you aren't willing to treat this as self employment I would say the tax is likely to be correct.

Jeremy535897

I assume you mean you put it in Box 17 of SA100. See the guidance regarding box 17 and the trading allowance on page TRG8:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/975554/sa150-notes-2021.pdf

As you will see, certain types of miscellaneous income like a bit of freelance income can qualify for the trading allowance.

bring_back_threepenny_bit

thanks, it's a bit confusing because on page 1 of 'Tailor your Return', it asks 'Was your turnover more than £1,000 in total from all self-employments?'. 
It seems to be a Catch 22 because If I enter less than 1k then the self-employment page doesn't appear so I can't claim the allowance which should cover the entire tax liability.

sheramber

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#trade

If your annual gross income from these is £1,000 or less, you do not need to tell HMRC, unless:

• you cannot use the allowances
• you must register for Self Assessment and declare your income on a tax return

Jeremy535897

bring_back_threepenny_bit said:

thanks, it's a bit confusing because on page 1 of 'Tailor your Return', it asks 'Was your turnover more than £1,000 in total from all self-employments?'. 
It seems to be a Catch 22 because If I enter less than 1k then the self-employment page doesn't appear so I can't claim the allowance which should cover the entire tax liability.

If you have a small amount of freelance income and don't have any true self employment income, what the notes say is that you only enter in Box 17 the amount above £1,000. if it is less than this, you enter nothing. If you would not otherwise have to complete a self assessment tax return, then a bit of freelance income under £1,000 doesn't oblige you to.