Using £1000 Traders Allowance to reduce my tax bill?Make Text Bigger
My two sons look after my properties whilst I am on holiday. If I make a payment to each of them of £1000 each for this service can I declare this as an expense on my tax return?
In addition can they take the money and not declare it under the trader’s allowance?
The trading allowance is a tax exemption of up to £1,000 a year for individuals with trading income from:
- Casual services, for example, babysitting or gardening (helpsheet 325 has more information about other taxable income)
- Hiring personal equipment, for example, power tools
If your annual gross income from these is £1,000 or less, you do not need to tell HMRC”
As ever I am looking to reduce my tax burden, any thoughts on this would be appreciated. My tax rate on all profits is 41% so every little helps.
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