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Posted Tue, 11 Apr 2023 20:55:59 GMT by kts77
I am self employed and employed. My self employment earns me about £1500 each year and I have minimal expenses. I have never heard of the £1000 trading allowance until today. I think this sounds like it would be better for me to use instead of deducting expenses? Can I amend previous tax returns to include this do you know?
Posted Wed, 19 Apr 2023 08:07:13 GMT by HMRC Admin 5

You have a choice of claiming expenses or claiming the trading allowance of £1000.00.  

You cannot choose both.  Have a look at the notes relating to trading allowance at page SESN1 (Self-employment (short)).  

You have 2 years from the end of the tax year the return is relates to, to amend the tax returns.  This means that it is now too late to amend the 20/21 tax return, as the last day for this was 31/01/23.  

Instead, you would need to claim Over Payment Releif (OPR) for the previous 2 tax years.  This means that it is now too late to claim OPR for 18/19.  

Claims for OPR must be made in writing to HM Revenue and Customs BX9 1AS and must follow the guidance at (SACM12150 - Overpayment relief: Form of claims).

Thank you.

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