£1,000 trading allowance
gavcradd
Posts: 110
Forumite
As well as my full time job, I've also recently authored a text book for an educational company who will pay commission to me based on sales. This is expected to be in the region of £700 total (it's quite a niche text book!). They will pay this commission directly into my bank account with no tax etc deducted.
Am I right in thinking that because this is less than £1,000, it would fall under the £1,000 trading allowance and I do not need to pay tax on it?
Secondly, I've been invited to do another set of resources for them on the same basis - if this also ends up paying approx £700, so £1,400 total, does this mean that I am allowed to have the first £1,000 tax free and pay tax on the £400? I assume this all needs to be done through self assessment?
Thanks in advance :-)
Am I right in thinking that because this is less than £1,000, it would fall under the £1,000 trading allowance and I do not need to pay tax on it?
Secondly, I've been invited to do another set of resources for them on the same basis - if this also ends up paying approx £700, so £1,400 total, does this mean that I am allowed to have the first £1,000 tax free and pay tax on the £400? I assume this all needs to be done through self assessment?
Thanks in advance :-)
0
Comments
-
I am allowed to have the first £1,000 tax free and pay tax on the £400? I assume this all needs to be done through self assessment?
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
as it appears you will have more than £1,000 of trading income then yes, as stated in the rules, you must use self assessment to be taxed on the excess0
This discussion has been closed.
Categories
- All Categories
- 342.5K Banking & Borrowing
- 249.9K Reduce Debt & Boost Income
- 449.4K Spending & Discounts
- 234.6K Work, Benefits & Business
- 607.1K Mortgages, Homes & Bills
- 172.8K Life & Family
- 247.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.8K Discuss & Feedback
- 15.1K Coronavirus Support Boards