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Posted Wed, 18 Sep 2024 10:49:54 GMT by Jo Hundred
I have two sole trader roles; one has income and no direct expenses (other than lighting, heating etc) the other requires specialist equipment and consumable items that I bought during the tax year. For the first, I have earnt more than the £1000 trading allowance, so I know I need to complete a tax return. My understanding is that I can enter one trading allowance for both roles, and that by claming a trading allowance I cannot claim other expenses relating to the work. Does that inlcude the cost of equipment or the consumable items, almost £750, that I have had to buy to do the work, or can I claim those in addition to the £1000 trading allowance?
Posted Thu, 26 Sep 2024 12:02:20 GMT by HMRC Admin 32 Response
Hi,
If you claim the trading allowance you cannot claim any other type of expenses for that trade, it is an all or nothing.
Thank you.
Posted Mon, 21 Oct 2024 11:17:19 GMT by Jo Hundred
Thank you. Just to clarify, in my first sole trader role I have made a profit; in my second sole trader role I made a loss because income did not cover the cost of the equipment and consumables I had to buy (but it was less than £1000). Is this loss covered in the £1000 trading allowance, as an expense, or do I enter the loss elsewhere?
Posted Mon, 21 Oct 2024 12:18:41 GMT by the sanewit
You don't have to claim the trading allowance. You may be better off ignoring the trading allowance and just claiming the expenses against profits. And, if you are, it's perfectly ok to do that. Entirely your choice.
Posted Mon, 28 Oct 2024 14:31:33 GMT by HMRC Admin 17 Response

Hi ,
 
You cannot claim the trading allowance as a loss.

So you will use actual expenses to generate the correct loss to be carried forward  .

Thank you .

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