The Bookkeepers.Network (BKN)

Post Info TOPIC: Trading Allowance


Expert

Status: Offline
Posts: 2416
Date:
Trading Allowance


Anyone else aware of this? It almost passed me by.

Instead of claiming expenses, a sole trader can claim £1000 trading allowance instead, which is good if the expenses are below £1k.† I'm assuming I can claim it for someone who has no expenses usually?



__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

Status: Offline
Posts: 428
Date:

Leger wrote:

Anyone else aware of this? It almost passed me by.

Instead of claiming expenses, a sole trader can claim £1000 trading allowance instead, which is good if the expenses are below £1k.† I'm assuming I can claim it for someone who has no expenses usually?


†Hi John

Yes did read about it but did not really go into much detail as all my clients have more than the allowance in expenses so it would not be of any benefit to them.

Edited to add the link in case anyone wants to read

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income



-- Edited by Artois on Tuesday 17th of April 2018 09:21:02 PM

__________________

Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Expert

Status: Offline
Posts: 2416
Date:

This particular client used to claim mileage allowance, but it is now a permanent place of work so he can't claim it anymore. I had another one last week, only £750 expenses so I claimed the trading allowance instead.



__________________

John†

†Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Senior Member

Status: Offline
Posts: 220
Date:

Ooh thank you for bringing this to my attention - This could help me on a personal basis (or rather my husband).

He is a music teacher. He used to be 80% self employed and had considerable business outgoings (private clients, freelance, etc etc) but now he is employed in a school full time but works in the holidays/very occasional weekends doing the odd private lesson/workshop/summer school. A few thousand a year income, all declared and not many expenses apart from occasionally having to rent a studio or buy sheet music (but he mostly works from home).

__________________

Julie



Master Book-keeper

Status: Offline
Posts: 6666
Date:

Ah now Julie be careful with this. Does your hubby do any s/e work that he bills the school for? Any kind of crossover with the school?

__________________

Joanne †McCormick

Fallows †Hall †Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 220
Date:

No crossover at all with school. He used to be a self employed peripatetic teacher (visited lots of academic schools, stage schools etc and invoiced them monthly) alongside the off performing job then he took on one college part time where he was employed PAYE but he is now full time on PAYE Mon-Fri with his current school but does private voice lessons (usually with adult clients/professionals or other teachers wishing to train in the particular method he is trained in) or one off workshop days again with adults.

He's dropped his private stuff a bit this year because we wanted to make sure we stayed in a particular income bracket for our daughter's dance college fee scholarship but he's hoping to increase it and do more next year.



-- Edited by pictures on Wednesday 18th of April 2018 02:58:00 PM

__________________

Julie



Master Book-keeper

Status: Offline
Posts: 6666
Date:

Hi Julie
Sounds like he is not running the risk of one of the exclusions/anti avoidance measures then.

The exclusion I was thinking about was eg if he just did one small job for the school he now works with then no relief what-so-ever would be available under this allowance.

Did your daughter get her scholarship? What/where is she training? (Am nosey but an ex dancer! I shouldve been born in the 1930s!)


__________________

Joanne †McCormick

Fallows †Hall †Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 220
Date:

She doesn‚t get it from us but yes she got the funding. It‚s called Dada & comes from the government. It‚s strange for dancers as they can go into higher Ed at 16 instead of 18. She decided she was too young to go & live alone in London so is going to be attending a full time dance school in your county. But going back to the original subject. I am quite surprised there is no minimum level of s/e income set to claim it especially as the govt seemed eager to clamp down on ‚hobby businesses‚.

__________________

Julie

Jay


Senior Member

Status: Offline
Posts: 189
Date:

Just completed my first Return claiming the Trade allowance.

Expenses very low,† far below £1000 as works within CIS.

Its an allowance, so I assume yes you can claim it if your client normally has no expenses relating to their business.

BW

Jay



__________________


Master Book-keeper

Status: Offline
Posts: 6666
Date:

pictures wrote:

She doesn‚t get it from us but yes she got the funding. It‚s called Dada & comes from the government. It‚s strange for dancers as they can go into higher Ed at 16 instead of 18. She decided she was too young to go & live alone in London so is going to be attending a full time dance school in your county. But going back to the original subject. I am quite surprised there is no minimum level of s/e income set to claim it especially as the govt seemed eager to clamp down on ‚hobby businesses‚.


†Good on her!† Cant blame her about the London thing, think how much she will save!††

The allowance was initially brought in so that the hobby businesses didnt have to declare if its under £1000 income, as opposed to profit. But then they extended its use (presumably under the fairness thing), but then restricted it, presumably after someone suggested he could be highly abused in the way it was drafted in the first instance. Tax made simple - not!



__________________

Joanne †McCormick

Fallows †Hall †Ltd

Winner - Bookkeeper of the Year 2015, 2016 and 2017

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.



Senior Member

Status: Offline
Posts: 236
Date:

Hi

The thing which stands out for me for this allowance is that you can claim on both trading income and property income, so for some of my clients this has mean't a claim of 2 x the £1000

__________________

Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.

Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.

Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  

©2018 The Bookkeepers Network (BKN). All Rights Reserved. The Bookkeepers Network (BKN) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Bookkeepers Network and BKN are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Bookkeepers Network. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Bookkeepers Network. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: info@bookkeepers.network or info@bookcert.co.uk.