Tamen Logo

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.

Share this post:

Looking for instant advice?

Our team are waiting to answer any question you may have via our live chat feature.

Socials

Contact our team

Call us on:

01204 391 505

Email us on:

mjs@tamenaccountants.co.uk

Related blog articles

26th Feb 25 | Updates/ News

Self-employed must report profits on tax...

Big changes are here for the self-employed! From 2024-25, profits must align with the tax...

Read more

26th Feb 25 | Updates/ News

Pension reforms announced...

The UK government is shaking things up with some significant pension reforms aimed at boosting...

Read more

26th Feb 25 | Updates/ News

The Value of Social Media in Promoting a...

Building Brand AwarenessSocial media platforms provide an unparalleled opportunity to reach a broad audience and...

Read more

Let us know your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *