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Posted Thu, 20 Jan 2022 11:05:51 GMT by MarcoC
I'm a self-employed freelance translator and that's where all my income comes from. I was about to use the simplified expenses to claim some expenses for rent and utilities for working from home (approx £200/£300), however I then saw "trading income allowance" of £1000 in self assessment. My understanding is that if I claim this trading allowance, then I cannot claim expenses. Is there a reason why I shouldn't claim the £1000 trading allowance and instead claim only £200 or £300 expenses?
Posted Fri, 21 Jan 2022 12:22:28 GMT by HMRC Admin 10
Hi

If you claim the trading allowance then your gross profit would be reduced by £100.

If you use expenses, then your gross profit will be reduced by £200.

Tax is then charged on your net profit.

There is no reason to stop you claiming the trading allowance.

Thankyou.

Regards.
Posted Fri, 21 Jan 2022 12:57:21 GMT by MarcoC
You said "if you claim trading allowance, your gross profit would be reduced by £100". Why only £100? Did you mean "by £1.000"?
Posted Fri, 21 Jan 2022 13:37:47 GMT by HMRC Admin 10
Hi

Apologies, this should have read £1000.

Thanks.

Regards.

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