The Trading Allowance is a tax-free allowance worth £1,000 that most self-employed people can claim.
The Trading Allowance is very simple to use:
The only time you can’t claim the Trading Allowance is if you’re not using “cash basis“, but that’s rare.
No, not quite. An allowance is an amount that you can earn before you’re liable to pay tax on the earnings. A tax relief is something that you use to pay less tax (reduce your tax bill).
In the UK, you must keep all of your Tax Records (including expense receipts) for a minimum of 6 years. We recommend storing these digitally where possible to prevent them being lost! Even a scanned copy of a receipt can be a great way to keep things in order.