Just to clarify also, when I add the income from the consultancy on the self assessment should I say yes to the self-employed question and add the income there or just under the Other Income section?
If your income is below 1k limit no need to enter it at all
if you are unsure whether the business is a trade or not then i don't have an easy answer for you and there may not be an easy answer - if you set up with the intention of earning via self employment or the activity amount to self employment i would say self employed page - if some casual income came your way and you had no intention of trading. business and its a one off then possibly other income - your comments about sole trader suggest the the self employed box should be used.
Note if you are completing tax return boxes then for sole trader enter full sales and enter trading allowance claimed in the relevant box - and for misc other taxable income - you take off the 1k before entering the income.
from the notes page ref any other income box
Do not include any income from your employment, self-employment or capital gains, or any miscellaneous income exempted by the trading income allowance.
Tony has self-employed income of £500 and
miscellaneous income of £800.As this income is over £1,000 it has to be reported in his
tax return.Tony puts £500 in box 9 (Turnover) and £500 in box
10.1 (Trading income allowance) of his Self-employment (short) pages.
Amount of allowance remaining = £500
Tony puts £300 in box 17 (£800 minus £500 (remaining
amount of trading income allowance))