Self assessment £1000 tax rule

The wife works for the bank (PAYE)
Last tax year she did some additional work for a school and was paid just under £1000 so I made a note on her tax return and she didn't pay any tax.
This tax year will be different. She will be in receipt of around £1500. 
My question is - Will she be taxed on the whole amount or just the £500 over the limit.

Many thanks

Bruno 
«1

Comments

  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,756
    First Anniversary First Post Name Dropper
    Forumite
    Brunokid said:
    The wife works for the bank (PAYE)
    Last tax year she did some additional work for a school and was paid just under £1000 so I made a note on her tax return and she didn't pay any tax.
    This tax year will be different. She will be in receipt of around £1500. 
    My question is - Will she be taxed on the whole amount or just the £500 over the limit.

    Many thanks

    Bruno 
    Why wasn't this paid under PAYE?
  • Is she registered as self-employed? 

    The ‘tax rule’ that you state is the trading allowance for sekf-employed traders. 
  • Brunokid
    Brunokid Posts: 19
    First Post First Anniversary
    Forumite
    Brunokid said:
    The wife works for the bank (PAYE)
    Last tax year she did some additional work for a school and was paid just under £1000 so I made a note on her tax return and she didn't pay any tax.
    This tax year will be different. She will be in receipt of around £1500. 
    My question is - Will she be taxed on the whole amount or just the £500 over the limit.

    Many thanks

    Bruno 
    Why wasn't this paid under PAYE?
    Because it was nothing to do with her employer. It was additional works for a private school
  • Brunokid
    Brunokid Posts: 19
    First Post First Anniversary
    Forumite
    edited 22 January at 2:51PM
    Is she registered as self-employed? 

    The ‘tax rule’ that you state is the trading allowance for sekf-employed traders. 
    She isn't registered as self employed although I do fill in a TR for her as she has income from other sources, property, savings, etc..
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,756
    First Anniversary First Post Name Dropper
    Forumite
    edited 22 January at 2:51PM
    Brunokid said:
    Is she registered as self-employed? 

    The ‘tax rule’ that you state is the trading allowance for sekf-employed traders. 
    She isn't registered as self employed although I do fill in a TR for her as she has income from other sources, property, savings, etc..
    If she isn't registered as self employed but has why would you expect to utilise the trading allowance 🤔
  • [Deleted User]
    [Deleted User] Posts: 0
    First Anniversary Photogenic Name Dropper First Post
    Newbie
    edited 22 January at 2:51PM
    Brunokid said:
    Is she registered as self-employed? 

    The ‘tax rule’ that you state is the trading allowance for sekf-employed traders. 
    She isn't registered as self employed although I do fill in a TR for her as she has income from other sources, property, savings, etc..
    Then she can’t claim the trading allowance. There is no £1000 ‘tax rule’ and the full £1500 is taxable, as was the ‘just under £1000’ for last year. 

  • QrizB
    QrizB Posts: 13,648
    First Post First Anniversary Photogenic Name Dropper
    Forumite
    Brunokid said:
    Brunokid said:
    The wife works for the bank (PAYE)
    Last tax year she did some additional work for a school and was paid just under £1000
    Why wasn't this paid under PAYE?
    Because it was nothing to do with her employer. It was additional works for a private school
    If it wasn't PAYE, what basis was it?
    Did the school give her payslips? Or did she invoice them?
    N. Hampshire, he/him. Octopus Go elec & Tracker gas / Shell BB / Lyca mobi. Ripple Kirk Hill member.
    2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 30MWh generated, long-term average 2.6 Os.
    Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs.
  • Brunokid
    Brunokid Posts: 19
    First Post First Anniversary
    Forumite
    QrizB said:
    Brunokid said:
    Brunokid said:
    The wife works for the bank (PAYE)
    Last tax year she did some additional work for a school and was paid just under £1000
    Why wasn't this paid under PAYE?
    Because it was nothing to do with her employer. It was additional works for a private school
    If it wasn't PAYE, what basis was it?
    Did the school give her payslips? Or did she invoice them?
    She invoiced them
  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 12,756
    First Anniversary First Post Name Dropper
    Forumite
    Brunokid said:
    QrizB said:
    Brunokid said:
    Brunokid said:
    The wife works for the bank (PAYE)
    Last tax year she did some additional work for a school and was paid just under £1000
    Why wasn't this paid under PAYE?
    Because it was nothing to do with her employer. It was additional works for a private school
    If it wasn't PAYE, what basis was it?
    Did the school give her payslips? Or did she invoice them?
    She invoiced them
    Given she isn't self employed on what basis did she do this 🤔
  • Jeremy535897
    Jeremy535897 Posts: 10,375
    First Post First Anniversary Name Dropper
    Forumite
    Posters are overlooking the casual earnings option, which should be reported in Box 17 on SA100, net of the trading allowance (unless used elsewhere, as per the example given in the notes):
    https://assets.publishing.service.gov.uk/media/645381c92f62220013a6a4b8/SA150-Notes-2023.pdf

    If she sets herself up in business, she should register as self employed.
Meet your Ambassadors

Categories

  • All Categories
  • 341.7K Banking & Borrowing
  • 249.7K Reduce Debt & Boost Income
  • 449.2K Spending & Discounts
  • 233.9K Work, Benefits & Business
  • 606K Mortgages, Homes & Bills
  • 172.5K Life & Family
  • 246.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards