{"id":923,"date":"2019-07-18T15:55:19","date_gmt":"2019-07-18T14:55:19","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=923"},"modified":"2026-01-28T07:27:11","modified_gmt":"2026-01-28T07:27:11","slug":"was-the-1000-trading-allowance-scrapped","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/self-employed-tax-returns\/was-the-1000-trading-allowance-scrapped\/","title":{"rendered":"Was the \u00a31,000 Trading Allowance scrapped?"},"content":{"rendered":"\n<p>You might have heard rumours that the <strong>\u00a31,000 trading allowance was scrapped<\/strong>, but rest assured, it&#8217;s still available! This allowance allows the self-employed to earn up to \u00a31,000 tax-free. \ud83c\udf89<br><br>Whether you&#8217;re a part-time freelancer or running a small business, this allowance is your chance to ditch the complicated paperwork and keep things simple. Let\u2019s break down how it works, clear up the rumours about the <strong>\u00a31,000 trading allowance<\/strong> being scrapped, and explain what you need to know next.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">First of all, what is the Trading Allowance?<\/h3>\n\n\n\n<p>If you\u2019re self-employed, you can get up to \u00a31,000 each tax year without having to pay income tax or <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/national-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">national insurance<\/a> contributions. So, no &#8211; the <strong>\u00a31,000 trading allowance hasn\u2019t been scrapped<\/strong>. \ud83d\ude05<\/p>\n\n\n\n<p>In much simpler terms: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you earn less than \u00a31,000 from self-employment, it\u2019s completely tax-free (no need to complete a tax return for this)<\/li>\n\n\n\n<li>If your expenses are under \u00a31,000, you can simply claim this allowance instead (it\u2019s bigger and you don\u2019t need to worry about receipts)<\/li>\n\n\n\n<li>If your expenses are over \u00a31,000, you can use the Trading Allowance as a partial relief<\/li>\n<\/ul>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-blue m-align-left\">\n    <div class=\"b-block-body\">\n        <p>If you claim the \u00a31,000 Trading Allowance, you won\u2019t be able to claim any other self-employment allowances (like <a href=\"https:\/\/taxfix.com\/en-uk\/mileage-allowance\/\" target=\"_blank\" rel=\"noreferrer noopener\">mileage<\/a>, <a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/home-as-office-allowance\/\" target=\"_blank\" rel=\"noreferrer noopener\">home office<\/a>, etc.). You also won\u2019t be able to claim <a href=\"https:\/\/taxfix.com\/en-uk\/self-employed-claimable-expenses\/\" target=\"_blank\" rel=\"noreferrer noopener\">business expenses<\/a>. \ud83d\udea8<\/p>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Who else can claim the Trading Allowance?<\/h2>\n\n\n\n<p>The Trading Allowance isn\u2019t limited to those with a limited company. Here are some others who can claim the Trading Allowance:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Construction workers claiming the <a href=\"https:\/\/taxfix.com\/en-uk\/cis-rebate\/\">CIS tax rebate<\/a> \ud83d\udc77<\/li>\n\n\n\n<li>People who provide casual services, i.e babysitting or selling a few items on eBay<\/li>\n\n\n\n<li>If you\u2019re renting out items, for example, power tools \ud83e\uddf0<\/li>\n<\/ul>\n\n\n\n<p>Landlords are usually entitled to a similar <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/property-income-allowance\/\">allowance<\/a> on property income. This is also a cool \u00a31,000, so if you have both types of income, you\u2019ll get a \u00a31,000 allowance for each. Sounds good to us!<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - how does the Trading Allowance work?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/UWvnfhudHqE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Do I need to submit a Self Assessment tax return to claim it?<\/h2>\n\n\n\n<p>Whether you submit a Self Assessment tax return depends on how much you earn from self-employment. It also depends on how you choose to use the <strong>\u00a31,000 trading allowance<\/strong>, which hasn&#8217;t been scrapped.<\/p>\n\n\n\n<p>If your income from self-employment is under \u00a31,000 and you don\u2019t have another reason to file a tax return such as employment income over \u00a3100k, then you don\u2019t even have to register for Self Assessment in this case. \u274c<\/p>\n\n\n\n<p>On the other hand, if your gross trading income is over \u00a31,000, then you will need to report this income to HMRC by completing a Self Assessment.&nbsp;\u2705<\/p>\n\n\n\n<p>On your Self Assessment, you should deduct the Trading Allowance and tick the box to ensure HMRC know you are doing so.<br><\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-purple m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        <h2 class=\"b-cta-mini__title\">Need Self Assessment help? <\/h2>\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p>Whether you&#8217;re using the \u00a31,000 trading allowance or dealing with other income, getting it right is key. Let our accredited accountants handle the paperwork, so you don\u2019t have to. Start your Self Assessment today and breeze through tax season!<\/p>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a href=\"https:\/\/taxfix.com\/en-uk\/assessment\/companyReturn\" class=\"c-button m-large  m-mobile-fullwidth\">Get started<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h3 class=\"wp-block-heading\">The \u00a31,000 Trading Allowance is Here to Stay<\/h3>\n\n\n\n<p>Despite the rumours, the<strong> \u00a31,000 trading allowance<\/strong> is still available, offering a simple way for self-employed individuals to manage their income. Whether you\u2019re earning from side gigs or running a small business, you can earn up to \u00a31,000 tax-free, cutting down on tax stress and paperwork. \ud83d\udc4f<\/p>\n","protected":false},"excerpt":{"rendered":"<p>You might have heard rumours that the \u00a31,000 trading allowance was scrapped, but rest assured, it&#8217;s still available! This allowance allows the self-employed to earn up to \u00a31,000 tax-free. \ud83c\udf89 Whether you&#8217;re a part-time freelancer or running a small business, this allowance is your chance to ditch the complicated paperwork and keep things simple. Let\u2019s [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[441,440],"tags":[416,411,415],"class_list":["post-923","post","type-post","status-publish","format-standard","hentry","category-general-self-employed-tax-faqs","category-self-employed-tax-returns","tag-benefits-reliefs-grants","tag-self-employed","tag-tax-return-basics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Was the \u00a31,000 Trading Allowance scrapped? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"Was the \u00a31,000 trading allowance scrapped? No! 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