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Posted Wed, 11 May 2022 06:34:02 GMT by fryderykchopin
I am academic staff in a UK based university as a regular employee with a work contract, paying taxes and NIC via PAYE. In addition to this, I receive some additional income from an overseas university for providing services such as research outputs, seminars to their students, etc. There is no work contract with the overseas university, just a formal collaboration agreement. According to an earlier response I received in this forum, I declare this additional income in my self assessment as 'any other income' in the 'Other UK income' section and do not include anything in the foreign income section as it is not taxed overseas (there is a double taxation agreement with the UK). I don't have any registered business and haven't registered this in any formal way, I'm just a regular UK employee with this additional income. The info I have read in HMRC pages suggests that this can be seen as miscelaneous income rather than self-employment income, and since it is above £1000 per year I am wondering if I can claim the 'trade income allowance', in other words, deduct £1000 from the amount of income that I include in my tax return. If the answer is yes, how far back in time could I go to ammend this in previous tax returns. I can see that I have the option to ammend the previous tax return (2020-21), but what about older tax returns? Thank you
Posted Fri, 13 May 2022 15:32:14 GMT by HMRC Admin 20
Hi fryderykchopin,

The trade allowance is only available if this is seen as a trade.
You would need to then register as self employed and amend previous years returns to reflect this.
Class 2 national insurance may also be due on this income.
Further guidance can be found here:
Set up as a sole trader
and
Self-employed National Insurance rates
and
If you need to change your return

Thank you.

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