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Posted Mon, 20 May 2024 08:38:59 GMT by Aleksandra Laniecka
Hi. I have a full-time job here in the UK and as a sole trader (coaching). In the last tax year, I earned a bit over £800 coaching, however, 100% of the income was from my clients in an EU country. I have two questions: 1. Do I declare this income as foreign income? 2. Does the Trading Allowance of £1000 apply at all? Thank you in advance.
Posted Thu, 23 May 2024 14:40:32 GMT by HMRC Admin 20 Response
Hi Aleksandra Laniecka,
The answer is 'yes' to both questions.  
As it is foreign income, a tax return is required.  
You complete SA103 as part of the return and can claim the £1000 trading allowance.  
The result is you have declared the foreign income and you do not need to pay tax on it while it is below the trading allowance.  
Anything above the trading allowance would be taxable.
Thank you.

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