Self Employed full/short 13 - Trading income allowance

If your total receipts from Self employment and miscellaneous income are £1,000 or less then they are exempt from tax and do not need to be reported in a tax return.

If your turnover was above £1,000 you can either:

• claim the new allowance here, but you cannot deduct any allowable expenses or claim any other allowances
• calculate your trading profits by deducting allowable expenses and allowances, but if you do this you cannot claim the trading income allowance

However, if your allowable expenses are higher than your turnover and you want to claim relief for the loss, you cannot claim trading allowance.

The trading allowance of up to £1,000 can be split across more than one business and against miscellaneous income.

You cannot use the trading income allowance if you make a loss, unless you have claimed overlap relief.

If you have more than one self employment, or miscellaneous income, the total amount claimed cannot exceed £1,000.

For more information on trading income allowance got to Tax-free allowances on property and trading income.