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Posted Mon, 04 Nov 2019 15:30:18 GMT by leopoldo
I wasn't aware of the £1000 trading allowance in 2017-2018, so I did not include this and deduct this amount from my earnings in my self-assessment. Can I do this now? If so, how? After doing so, how would I claim a refund on the additional tax paid? Thanks in advance
Posted Tue, 05 Nov 2019 07:12:00 GMT by HMRC Admin 3

Hi,
You can claim the trading allowance in the year that you are completing the return. So if you did not claim the trading allowance in the year 2017/18 you cannot carry it forward.
For the year 2018/19 you can consider using the trading allowance or expenses. You cannot claim both.
Please refer to the following link:
Tax-free allowances on property and trading income

Posted Tue, 05 Nov 2019 07:21:59 GMT by leopoldo
I used the 1000 allowance in 18-19 on my tax return, but I wasn't aware that this existed in 17-18 so I did not use it then. Does that mean that I cannot amend my 17-18 tax return and now include that trading allowance?
Posted Tue, 05 Nov 2019 10:02:00 GMT by HMRC Admin 3

Hi,
You are still able to amend your 2017/18 return.
If you filed this online then you can go back into your account and amend this up to 31st January 2020.
Details on how to do this can be found here:
If you need to change your return
If you filed a paper return then you can write to us and tell us which boxes you wish to amend.
Please bear in mind that you cannot claim expenses along with the £1000 allowance.

Posted Sun, 29 Dec 2019 13:33:30 GMT by Curucturberght
only £1000?
Posted Mon, 30 Dec 2019 12:47:00 GMT by HMRC Admin 5
Hi,

Yes the new self employment trading allowance has been agreed at £1000. please see: 

Tax-free allowances on property and trading income
Posted Fri, 10 Apr 2020 18:50:06 GMT by Sylvia
Hi, can I use trading allowance to calculate self-employement income for tax credit purposes? Thank you
Posted Tue, 14 Apr 2020 10:42:00 GMT by HMRC Admin 3
Hi Sylvia,
Tax credit customers who are self-employed should use their net profit when completing their claim form. 
Whether you use the £1000 trading allowance or actual expenses to arrive at your net profit will not change this. 
You should still enter the net proft in your claim form.

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