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  • Etsy seller offering free delivery- personal trading allowance?

    Hi, I started a little hobby business selling crafts on Etsy in March last year. I'm coming up close to my £1000 personal trading allowance for 2021/2022 but i've been offering free delivery for all my sales and paying for the postage out of my total sales cost. Can I deduct the postage costs or do I have to include this as net turnover due to offering free delivery? Also - my equipment was bought in the 2020/2021 tax year but I only made 2 sales so technically made a big loss - can this be carried over to 2021/2022 as expenses? I think I need to work out whether to claim partial relief with the personal trading allowance or to claim expenses instead thanks for any wise words of wisdom!