Tel: 0118 402 8950
The 'badges of trade' tests whilst not conclusive are used by HMRC to help determine whether an activity is a proper economic trade / business activity or merely a money-making by-product of a hobby.
The approach by the courts in using the badges of trade has been to decide questions of trade on the basis of the overall impression gained from a review of all the badges.
HMRC will consider the following nine badges of trade as part of their overall investigation as to whether a hobby is actually a trade:
Even if HMRC consider that the activities in question are a trade, taxpayers can make up to £1,000 per year tax-free by claiming the trading allowance.
Choice Accountants Limited
10 Indigo HouseMulberry Business ParkFishponds RoadWokinghamBerkshireRG41 2GY
Tel: 0118 402 8950Fax: 0118 402 8959
With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!
» Sign up for the newsletter» Login