What is the Trading Allowance?

Written By Damion Viney

There is no tax to pay on the first £1k of trading sales.

If your sales as a Sole Trader are less than £1k you do not have to declare this income on your Self Assessment.

If your sales are more than £1k you must complete Self Employment pages on a Self Assessment but instead of deducting business expenditure from sales to arrive at a taxable profit, you can elect to deduct the Trading Allowance of £1k.

Damion Viney

Damion Viney has been supporting business owners to make a success of their ventures since 2011 when he set up Co-. Blogs cover all aspects of business development. He is co-author of Improving the Numbers. 

linkedin.com/damion-viney

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