Finance Article - December 22/January 23
Your Questions Answered by TaxAssist Accountants
I am a partner in a partnership, can I claim the trading allowance?
I operate as a partnership and have trading income from that and no other sources of income, is the trading allowance available for me?
The trading allowance was brought in back in April 2017 along with the property allowance, each allowance is £1,000.
If you have both types of income, you may be eligible for both allowances, depending on all the facts and how the income is generated.
If you decide to use the allowance then you are not able to claim actual expenses, you are choosing to deduct the allowance rather than the actual costs you have incurred or any other allowances. It might not therefore be beneficial to claim the allowance if you have a considerable amount of expenses that can be deducted.
But one thing to note is that the trading allowance is not available where you are trading as a partnership, the trading income it can be used against is:
- Casual services for things like gardening, babysitting, etc
- Hiring of personal equipment such as power tools
Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.