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KB Home / Tax Return Production / Information about the Trading/Property allowance

Information about the Trading/Property allowance

Article ID: 2849
Last updated: 09 Mar, 2023

Trading and Property allowance came into effect in the 2017/18 tax year. This effectively means that if your income (before expenses) is less than the £1,000 value, you will no longer have to declare or pay tax on this income.

HMRC have published information on their website surrounding the tax allowance. 

If your income is over the threshold, it means that individuals will now be able to complete one of two actions for calculating your taxable profits:

  1. Deduct the allowance from your receipts, instead of deducting the actual allowable expenses. The trading allowance will also apply for Class 4 National Insurance contribution purposes.
  2. If your allowable expenses are higher than the allowance, you would continue to claim these to reduce your profits overall and effectively the allowance is lost.

In order to input this into the software, you need to locate the page in the software for trade/property. 

SimpleStep:

  • Property: Other Income > UK Property and Furnished Holiday Lettings in the EEA > Furnished Holiday Lets- Income > Property income allowance (up to £1,000)
  • Trade: Your Work > Self Employment > Short/Full Form > Income > Trading income allowance

HMRC Forms:

  • Property: UK Property > Page 1 > Box 5.1 or Page 2 > Box 20.1
  • Trade: Self employment > Short Form - Page 1 Box 10.1 Full form - Page 1 Box 16.1
Article ID: 2849
Last updated: 09 Mar, 2023
Revision: 4
Views: 1212
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Also listed in
folder Tax Return Production -> SA100 Individual Return

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