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Michael Sohor & Co is now known as Tamen Accountants. This is a name change only - we are the same dedicated team, and look forward to serving our valued clients for many years to come.

Since 2017, there is no tax to pay on trading income or earnings from land and property as long as the income from each source does not exceed £1,000.

Trading allowance

The trading allowance is a tax exemption of up to £1,000 a year for individuals with trading income from:

  • self-employment.
  • casual services, for example, babysitting or gardening.
  • hiring personal equipment, for example, power tools.

 

This allowance does not apply to trading income from a partnership.

 

Property allowance

The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.

If you own a property jointly with others, you are each eligible for the £1,000 allowance against your share of the gross rental income.

If you have two businesses and claim the property allowance in one business, you may not claim actual expenses in respect of the other business.

You cannot use this allowance on income from letting a room in your own home under the Rent a Room Scheme.

There are various provisions to make sure that these allowances are not exploited. If you want to take advantage of either or both these allowances read the fine print on the gov.uk website.

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Call us on:

01204 391 505

Email us on:

mjs@tamenaccountants.co.uk

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