{"id":483,"date":"2019-04-09T00:00:00","date_gmt":"2019-04-08T23:00:00","guid":{"rendered":"http:\/\/duffyregan.co.uk\/index.php\/2019\/04\/09\/tax-free-property-and-trading-allowances\/"},"modified":"2019-04-09T00:00:00","modified_gmt":"2019-04-08T23:00:00","slug":"tax-free-property-and-trading-allowances","status":"publish","type":"post","link":"http:\/\/duffyregan.co.uk\/index.php\/2019\/04\/09\/tax-free-property-and-trading-allowances\/","title":{"rendered":"Tax-free property and trading allowances"},"content":{"rendered":"<p>Since April 2017, you can earn &pound;1,000 from a trading activity and &pound;1,000 of property related income, without being liable to income tax.<\/p>\n<p>These tax-free allowances on property and trading income are useful as families can generate an extra &pound;2,000 a year of income without increasing their tax bills.<\/p>\n<p>Obviously, these small amounts will not be a replacement for your day-job, but they do contribute to financing your monthly bills.<\/p>\n<p><strong>What property income could this cover?<\/strong><\/p>\n<p>You could rent out:<\/p>\n<ul>\n<li>your drive as a parking space if you live in an area where parking spaces are at a premium,<\/li>\n<li>a part of your garden as a paddock or allotments if you have the space.<\/li>\n<\/ul>\n<p>One interesting aspect of this relief is that if you own property jointly, both parties are eligible for the &pound;1,000 property allowance to set off against their share of the gross rental income.<\/p>\n<p><strong>What trading income could this cover?<\/strong><\/p>\n<p>The scope for using the &pound;1,000 trading allowance are perhaps easier to exploit. Any hobby where you have an opportunity to sell goods produced, for example:<\/p>\n<ul>\n<li>internet sales<\/li>\n<li>craft products<\/li>\n<li>hiring power tools<\/li>\n<li>or any service related activity, mobile hairdressing, gardening support, babysitting.<\/li>\n<\/ul>\n<p><strong>If you do claim either of the above allowances, you cannot claim any expenses related to the activity.<\/strong><\/p>\n<p>Also, you cannot claim the allowances if the property or trading income is linked to a company, partnership to which you are connected, or your employer or the employer of your spouse or civil partner.<\/p>\n<p><strong>Record keeping<\/strong><\/p>\n<p>Even though there may be no tax consequence, you are still required to keep a record of your income covered by these allowances.<\/p>\n<p>And one final note, these miscellaneous income sources may also affect your eligibility for benefits and tax credits.<\/p>\n<!-- -->","protected":false},"excerpt":{"rendered":"<p>Since April 2017, you can earn &pound;1,000 from a trading activity and &pound;1,000 of property related income, without being liable to income tax. These tax-free allowances on property and trading income are useful as families can generate an extra &pound;2,000 a year of income without increasing their tax bills. Obviously, these small amounts will not [&hellip;]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-483","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"_links":{"self":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/comments?post=483"}],"version-history":[{"count":0,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/posts\/483\/revisions"}],"wp:attachment":[{"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/media?parent=483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/categories?post=483"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/duffyregan.co.uk\/index.php\/wp-json\/wp\/v2\/tags?post=483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}