Trading allowance with 2 income sources

can it be claimed?

Didn't find your answer?

Been going around in circles on this one - as far as I can see there is nothing in legislation to prevent an individual with partnership income and completely separate self employment income from claiming the trading allowance against the self employment, and preparing normal partnership figures.  Provided the SE income does not come from the partnership.

However having a few doubts I called our tax helpline who said no, because the partnership income is treated as self employment you could not claim it.

Are they right?

Replies (6)

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By Ruddles
30th Nov 2023 14:00

Sounds like your tax helpline is wrong (on the assumption that the information you provided was clear and unambiguous). The TA is available if the individual has 'relevant income', which includes receipts from 'relevant trades', which are trades carried on other than in partnership. So you simply ignore the partnership income (unless, as you already recognise, said income feeds into the self-employment) and if he also trades on his own account (ie does have a relevant trade) then that should be sufficient.

Thanks (2)
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By Geoff56
30th Nov 2023 14:31

Have a look at:
https://www.accountingweb.co.uk/any-answers/trading-allowance-st-and-par...

In particular, Basil's post on 28th June 2022 at 11.41, in which he corrected my misunderstanding.

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By rmillaree
30th Nov 2023 18:20

"I called our tax helpline who said no, because the partnership income is treated as self employment you could not claim it."

if would ring em back and push em again ese if they say the same a second time or start backtracking.

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By johnthegood
01st Dec 2023 08:11

I have had mixed responses from tax helplines, our current one is Vantage but it was the same when we used Croner, you can never automatically take what they said as being correct, I view them more as a second opinion or a comfort blanket

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Replying to johnthegood:
Ivor Windybottom
By Ivor Windybottom
01st Dec 2023 09:32

Like AI, you need to see the source of their advice for yourself!

I wonder what AI says? Bing Chat suggests it is OK, quoting 8 sources. Perhaps the AI is getting better than the helplines....

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Replying to Ivor Windybottom:
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By Tax Dragon
01st Dec 2023 10:14

The source is almost certainly Pt 9 of ITTOIA, which in effect taxes partnerships as groups of sole traders.

What that misses is s783AA, from which Ruddles quotes.

Bing Chat ain't looking at s783AA either, I promise you (it's not one of the 8 - if it was you wouldn't need the other 7!)

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