£1000 trading allowance & self employed partnership confusion
Hello, I am confused about the trading allowance rules and would like to know where I’m going wrong with my understanding please?
I have a simple business partnership with a family member. This is my main source of income.
I’m considering some casual self-employed work (
GCSE tutoring) where I expect to earn around £1500. (completely unrelated
to the partnership)
I am confused as to whether I can use the £1000
trading allowance on my casual work due to the rules on the HMRC website.
On the above link, when you click: 'When you cannot
use the allowances' it says:
You cannot use the allowances in a tax year, if you
have any trade or property income from:
“a partnership where you or someone connected to you are partners”
I don’t understand how it’s even possible to be in a partnership and not be connected to the partner?
The fact it says ‘any income from’ makes me think I’m not allowed to use this. Do does this mean I’m not able to use the allowance even though my casual income is absolutely nothing to do with my partnership?
Googling away I’ve found this implying that the trading allowance is allowed with
“As the rules currently stand, an individual with both a sole-trade and a micro-business is unable to benefit from the trading allowance. By contrast, an individual with an identical micro-business but whose main source of income is either from employment or income from a partnership is entitled to relief on their micro-business income.2 This is the case regardless of the amount of money an employee or partner derives from their main source of income.”
Anyone know where i'm going wrong and why things appear to contradict please?
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