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?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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
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.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
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).
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
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!)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
She doesnât get it from us but yes she got the funding. Itâs called Dada & comes from the government. Itâs 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 âhobby businessesâ.
She doesnât get it from us but yes she got the funding. Itâs called Dada & comes from the government. Itâs 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 âhobby businessesâ.
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!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
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
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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.
