Glossary · UK
What is Trading Income Allowance?
A £1,000 tax-free allowance against gross trading or miscellaneous income each tax year.
Full Definition
The Trading Income Allowance is the self-employment equivalent of the Property Income Allowance, letting an individual earn up to £1,000 of gross income from self-employment, casual work or other miscellaneous trading activity each tax year tax-free. As with the property allowance, it can be deducted instead of actual expenses if that produces a better result, and income under £1,000 generally does not need to be reported to HMRC, though anyone wanting to keep building National Insurance credits or pay Class 2 NI voluntarily may still choose to register.
See Also
Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.