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A Little Extra Income? Don’t Forget the £1,000 Trading Allowance
Selling eggs at the gate? Crafts at the local market? Perhaps you’re doing a bit of freelance work on the side?
If you’re earning a little extra income, there’s a useful tax rule worth knowing about: the £1,000 trading allowance.
In simple terms, you can earn up to £1,000 in gross trading income during a tax year without usually needing to tell HMRC about it. That can cover all sorts of small-scale or occasional self-employment.
Once your trading income goes over £1,000, however, you may need to register for Self Assessment and report your income to HMRC.
And with Making Tax Digital for Income Tax being introduced, getting into good habits from the start is more worthwhile than ever.
Not sure whether the rules apply to you? A quick chat with us now could save a much bigger headache later.
