Small income from writing

CharlesLincs

I very occasionally write stuff and get paid a little (and I mean little, less than £250 pa). My understanding so far was that I won't need to register as self-employed and also won't have to put this into my SA return as income as this is less than the £1000 limit.

Now I was asked whether I could do a little more and if so, I might top the £1000, in which case I'd have to register and put this into my return. OTOH I've read that I will get £1000 as expenses without the need to show any actual expenses.

Now if I make £1000 and can indeed deduct £1000 as expenses, will I be back to zero for the purposes of registering and income tax? Or is the £1000 income a simple limit, which once breached triggers registering etc?

A connected question is this: if I make £800 in a year, can I still deduct those £1000 and effectively lower my other income by £200?

Thanks for all clarification!

Jeremy535897

When your income, before deducting any expenses, exceeds £1,000 you will have to register as self employed. You can choose, when working out our profit, whether you deduct actual expenses or £1,000. If you choose the £1,000, it is limited to your income, so cannot create a loss.

CharlesLincs

Thanks, Jeremy, as ever clear and concise.
Just to make sure that I've understood... With earnings
<=£1000: no registering, no SA return mention --> no tax
>£1001: registering, SA return mention -> tax on £1 because I can deduct £1000 as expenses
Right?

Jeremy535897

CharlesLincs said:

Thanks, Jeremy, as ever clear and concise.
Just to make sure that I've understood... With earnings
<=£1000: no registering, no SA return mention --> no tax
>£1001: registering, SA return mention -> tax on £1 because I can deduct £1000 as expenses
Right?

Correct, yes.

CharlesLincs

Thanks again, much appreciated!