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Where Taxpayers and Advisers Meet

Allowable expenses vs trading allowance

adnauseum
Posts:14
Joined:Sun Jan 28, 2024 2:54 pm
Allowable expenses vs trading allowance

Postby adnauseum » Wed Jan 29, 2025 6:15 pm

I am calculating 'reasonable' allowable expenses for my UK tax return in good faith, but the advice from HRMC seems limited (someone on this forum referred me to HMRC 'internal' guidance on this issue, which suggests there isn't much in the way of guidance for taxpayers!)

Online advice from accountancy experts seems highly contradictory, in terms of what is allowed and your method of calculation.

It's likely that my figure might not amount to much more than the £1k trading allowance. Maybe £1.2k-£1.5k at most.

What if HMRC queried it, declared that I had overestimated and said I could only claim, say, £500? Presumably I cannot then revert to the trading allowance retrospectively... Is it therefore wise to go with the trading allowance and save myself a load of hassle and maybe even cash?

To be clear, I intend to be honest and reasonable with my numbers, but there is so much room for interpretation.

bd6759
Posts:4413
Joined:Sat Feb 01, 2014 3:26 pm

Re: Allowable expenses vs trading allowance

Postby bd6759 » Sat Feb 01, 2025 2:13 am

No idea what you are trying to calculate.

You can deduct allowable expenses. That is all.

What are these “reasonable” expenses you are thinking about?

Be vague and of course you will get contradictory answers.


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