Skip to main content

This is a new service – your feedback will help us to improve it.

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

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

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

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.
Posted Sun, 20 Sep 2020 20:22:08 GMT by Ahmet Yusuf AYDIN
Hi I earned less than £1000 in a year by private tutoring and didn't report that since it is under £1000. I'm not registered with HMRC. Now, I'm making an application via home office and there's a question in the form asking that "Are you already engaged in business?". Should I say yes or no?
Posted Mon, 21 Sep 2020 13:40:19 GMT by HMRC Admin 2

This is a HMRC forum.

We suggest to contact the Home Office for advice on completing a Home Office form.

Thank you.
Posted Mon, 21 Sep 2020 13:51:03 GMT by Ahmet Yusuf AYDIN
Thanks for your response. My intention to ask is to learn if this kind of earning would be considered as a business or not by HMRC since it's a personal income without a company and it's under trading allowance. I also want to confirm that there is no need to report this income and make invoice for that. Kind regards
Posted Tue, 22 Sep 2020 10:18:34 GMT by HMRC Admin 5

If you are using the trading allowance then you would be classing the income as self employment income for tax purposes.

You will need to check with the Home Office to see if this is what they mean by "business" on their form.

Thank You.

You must be signed in to post in this forum.