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HMRC internal manual

Business Income Manual

Example: Income from an excluded source

Jessica is a partner at an accountancy practice and receives partnership income of £60,000 during the tax year. Jessica also provides training courses to small businesses in her spare time.


During the tax year Jessica was engaged by her partnership in her capacity as a self-employed consultant to teach a training course for a fee of £500, she also provided training to another customer during the year earning a further £400, and did not incur any expenses in leading the training sessions. This self-employment income of £900 is relevant income.


Jessica is excluded from using the trading allowance as she has relevant income which includes a payment made by a partnership in which she is a partner. She cannot claim the trading allowance on any of his relevant income so must calculate her income under the normal rules. This means her taxable profits in relation to the trade are £900.