Trading allowance

On my 2021/22 tax return I had a business that had over 1k in turnover and the business was a separate section on my self assessment. In tax year 2022 / 23 the income is less than 1k but still made a few hundred pound in profit. This mean I can use my trading allowance? How do I reflect this in my self assessment do I just not have a self employment page for it at all so that it does not show on my self assessment or do I need a section for it and somehow come down to a zero figure?

Hi stringy,

You do not need to declare this as the trading allowance covers anything up to £1000 so technically no taxable profit.
Anwer no to the question was your turnover over £1000. you can put a note at the additional information section on the return to clarify.

Thank you

What section is the box where you was to answer "No" to the question "was your turnover over £1000" Which additional information section should I put the clarification?

Hi Stringy
In section 3, tailor your return, you would select yes to self employment and provide a name for your self employment.  Save and continue.  Click on section 4 - fill in your return and select self employment from the list.  Select 'No' to was your turnover more than £85000.  Scrool down to the questions regarding the turn over of £1000 or less and Save and continue.
Thank you.

I have a second section on my self employments as I have fostering income. This is over £1000 turnover. Is the trading allowance a combined turnover total for all self employments or for each self employment? Scenario For example my craft business had £200 turnover but my fostering self employment had £5000 turnover. Does this mean A. the combined of the two turnovers is over the £1000 allowance being £5200 so I cannot claim turnover allowance at all? or B. Each employment has a trading allowance so in the scenario above I can claim the trading allowance on the business with £200 turnover but not the fostering self employment?

Hi stringy,
It is one trading allowance of £1000 only no matter how many self employments you have.
Further guidance is here:
Tax-free allowances on property and trading income
Thank you. 

so to clarify can I use it on the craft business even though I have combined self employment turnover on both of over £1000

Hi stringy,
The trading income allowance can only be claimed instead of claiming expenses.
If you have combined your craft business profit with that of another business, you can only claim expenses or the trading income allowance, not both.
Thank you, 

Hi, Is Trading Allowance open to those who pay their taxes via PAYE? Thank you.

Hi,

No this is for self employed only. See link below:

Tax-free allowances on property and trading income

Thank you.

Hi, That's strange, because I asked HMRC the same question via X: 'Hi, is the £1,000 Trading Allowance available to those who pay their tax via PAYE? Thanks.' And they replied: 'Hi. Yes. If your main source of income is from PAYE, the trading allowance of £1000 for gross self employed income is available for you. Rob.'

Hi,

If you have both PAYE and self employment then yes you can claim the trading allowance against the self employed income. It cannot be claimed against PAYE income as you are not actually trading when employed under PAYE.

Please see guidance here.

Tax-free allowances on property and trading income

Thank you.

Thank you. Do you know whether Giffgaff Payback points need to be declared as income? 

[External link removed - Admin]

 

Hi sherpavanwoman

This would come under the miscellaneous income provisions.  Please refer to BIM100210 - Miscellaneous income: particular sources: cash-backs for guidance.

Thank you