Prolific personal allowance

Rainbow33xena

In terms of tax purposes, I am aware the first grand gained on prolific doesn't need to be declared. Just checking, this is per year yes? 

slinger2

No idea what you mean by "prolific", but if your talking about interest on savings then it's true that most basic-rate tax-payers don't pay income tax on the first £1k of interest. And, yes, that an annual allowance, each tax year. If you're getting more than £1k interest in a tax year (or even if your not) you need to consider ISAs. Interest on those is tax free.

MeteredOut

slinger2 said:

No idea what you mean by "prolific", but if your talking about interest on savings then it's true that most basic-rate tax-payers don't pay income tax on the first £1k of interest. And, yes, that an annual allowance, each tax year. If you're getting more than £1k interest in a tax year (or even if your not) you need to consider ISAs. Interest on those is tax free.

I had no idea either. Google suggests its a paid-per-survey type side-hustle. Posting it in the ISA forum threw me too.

OP, assuming that is the case, yes, the first £1K of any side hustle is typically tax free, called the Tax Free Trading Allowance. It is per tax year (not calendar year) and in itself does not need to be declared to HMRC.

https://taxaid.org.uk/tax-information/self-employed-or-business-owner/accounts-tax-and-finance/trading-allowance

Rainbow33xena

Sorry for the confusion. So the trading allowance for a side hustle (such as for surveys) is the first £1k per year yes? Just making sure I am understanding it correctly. 

Rainbow33xena

thanks, can see answer answered above. Per tax year, not calender yr. Great, much appreciated!

Dazed_and_C0nfused

Rainbow33xena said:

Sorry for the confusion. So the trading allowance for a side hustle (such as for surveys) is the first £1k per year yes? Just making sure I am understanding it correctly. 

The trading allowance is an amount you can deduct from your turnover instead of claiming expenses.

So if your turnover is £800 you can deduct £800 trading allowance to leave £0 profit.

If your turnover was £1,500 you could deduct £1,000 to leave £500 profit.

If you choose to use the trading allowance you cannot claim any expenses for that tax year.

Warslet

Prolific is an online survey site where you can respond to researchers on various topics lasting from a few minutes to sometimes an hour or more. The researchers pay for successful responses at the rate stated on the Prolific website. My understanding is that £1000 per tax year is the amount which can be ‘earned’ by responding to surveys. It may be worthwhile checking on the Prolific site for the correct information. This is not a cash ISA enquiry but I hope this helps. 

Johnjdc

Rainbow33xena said:

Sorry for the confusion. So the trading allowance for a side hustle (such as for surveys) is the first £1k per year yes? Just making sure I am understanding it correctly. 

It would be more accurate to say "for side hustles". £1k total even if you have more than one.