Trading allowance and self assessment (employed)

Mildred22

helping a relative sort out a tax query, suspect it is straightforward we just can't find the answer...

Employed all of 21/22 - also had about £1200 in payment from abroad for freelance work - added this as "income" in the online tax account and HMRC have amended the tax code for 22/23 to take 20% off.

Now realise could have used the trading allowance to have £1000 tax free - is it possible to now do self assessment for 21/22 and then claim it ? do you register as employed and fill in SA100 and the SA103s ?

Savvy_Sue

You'd get your answer very fast on the Cutting Tax board, I suspect, but I thought the 'under £1000' exemption just meant you didn't need to register for less than £1000. If you DO have to register, I think the whole of your s/e earnings are liable to tax, not just anything over £1K. I'll await correction if I'm wrong about that ...

https://forums.moneysavingexpert.com/categories/cutting-tax

Mildred22

Thanks I'll post it over there to see what happens 

Jeremy535897

Savvy_Sue said:

You'd get your answer very fast on the Cutting Tax board, I suspect, but I thought the 'under £1000' exemption just meant you didn't need to register for less than £1000. If you DO have to register, I think the whole of your s/e earnings are liable to tax, not just anything over £1K. I'll await correction if I'm wrong about that ...

https://forums.moneysavingexpert.com/categories/cutting-tax

You don't declare self employment income if it is less than £1,000 in the tax year. If your sales are more, you can deduct either your actual expenses, or £1,000.