HMRC has announced the new hobby trading allowance of £1,000. In simple terms, if your trading income doesn’t exceed £1,000 in the tax year, you won’t pay any tax on your profit. Nonetheless, this still has to be declared on your tax return if you are registered to submit your self-assessment. If you weren’t registered for self-assessment at the point of earning this income, there is no need to register and declare given the sales amount does not exceed £1,000. If your income exceeds the threshold of £1,000 in any tax year, you would be required to register and declare this on your tax return.
£1,000 tax-free trading allowance