Tax Return Threshold

CameraGuy11 · 14 January 2020 at 8:48PM

I'm currently registered as a Sole trader doing 1-2 photography jobs a month, nothing major. Last year I was below the £12500 Income Tax threshold, I think this year I may have gone over it but around £2000, my question is if I'm over it do I pay 20% on the whole £14500 or just the £2000?

Thank you

00ec25 · 14 January 2020 at 10:07PM

crikey have you really got no idea?

the personal allowance is what it says it is: the amount of money you can earn before you pay tax

if you only do 2 jobs per month what do you do with the rest of your time? Do you have an employment job, other sources of self employment, any other source of income (interest, investment dividends)?

time to do some basic reading:
https://www.moneyadviceservice.org.uk/en/articles/income-tax-and-national-insurance

CameraGuy11 · 15 January 2020 at 10:02AM

Thanks, I'm retired so it's more of a hobby but as I say I take on a couple of jobs when they come up.

Pennywise · 15 January 2020 at 11:26AM

CameraGuy11 wrote: »

Thanks, I'm retired so it's more of a hobby but as I say I take on a couple of jobs when they come up.

Presumably you get pension(s) - they're taxable so will use up some or all of your £12.5k personal allowance.

00ec25 · 15 January 2020 at 2:59PM

CameraGuy11 wrote: »

Thanks, I'm retired so it's more of a hobby but as I say I take on a couple of jobs when they come up.

so you have other sources of income which are taxable and therefore count towards using up the allowance

do please read the link

Percy1983 · 15 January 2020 at 8:50PM

The short answer is you do your tax return and it will tell you how much you owe (if anything).

Of course your tax return will ask about all income.

Tax Return Threshold

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