In preparation for 2017/18 self assessment returns, I've been looking at the new £1000 trading and property allowances.
My understanding is that if someone has a small amount of income from providing goods or services alongside their main job, they can choose to claim £1000 as trading expenses rather than adding up their actual trading expenses (which might say only be £500). I understand there is also a £1000 allowance for property income, but I'll leave that for now.
So, for example, David earns £1500 alongside his main job income from providing a service. He can claim £1000 trading expenses instead of working out individual expenses. On his self assessment form, can he also claim capital allowances for say £200 worth of long term equipment he uses to provide the service?
So in summary, is the £1000 allowance purely relating to day to day trading expenses? And can the person still make an entry in the capital allowance box?
Any thoughts appreciated.
Edited at 04 Apr 2018 09:08 AM GMT