Queries about being Self-Employed and Trading Allowance
Posted: December 11th, 2021, 7:42 pm
Hi. Hypothetical scenario:
My total annual income consists of £9k pension, topped-up by income of £1.5k buying/selling on eBay. The total is £10.5k which is less than my annual personal allowance (£12.57k).
a) Do I need to register as self-employed?
b) I have read that income made on eBay is taxable but there is a Trading Allowance of £1k. Does this mean:
i) I pay no tax?
ii) I pay no tax on the £9k pension but pay (20%?) tax on (£1.5k - £1k = ) £0.5k?
iii) Something else?
Many thanks for any explanations.
My total annual income consists of £9k pension, topped-up by income of £1.5k buying/selling on eBay. The total is £10.5k which is less than my annual personal allowance (£12.57k).
a) Do I need to register as self-employed?
b) I have read that income made on eBay is taxable but there is a Trading Allowance of £1k. Does this mean:
i) I pay no tax?
ii) I pay no tax on the £9k pension but pay (20%?) tax on (£1.5k - £1k = ) £0.5k?
iii) Something else?
Many thanks for any explanations.