Traders allowance confusion

mr_hello

Hi there,


My main source of income is from writing, filmmaking and composing music.


As a hobby, I like to buy and sell clothes on eBay.


My gross income from this in 17-18 was £3,000, so not eligible for Traders Allowance.


Total expenses for this however was £3600 including postage and eBay fees, so a total loss of £600.


As I don't see it as business related it feels dishonest to count it against my income, but I don't feel like I should not list it at all. What should I do?


Thanks

Pennywise

mr_hello wrote: »

Hi there,


My main source of income is from writing, filmmaking and composing music.


As a hobby, I like to buy and sell clothes on eBay.


My gross income from this in 17-18 was £3,000, so not eligible for Traders Allowance.


Total expenses for this however was £3600 including postage and eBay fees, so a total loss of £600.


As I don't see it as business related it feels dishonest to count it against my income, but I don't feel like I should not list it at all. What should I do?


Thanks

If it's not a "proper" business, put it down, but carry the loss forward against future profits of the same business, as opposed to setting them sideways against other income to claim a refund. That way, you'll get your relief if you make a profit in a future year, which may be more morally acceptable to you.