One of the most time consuming parts of a tax return is getting everything in place to submit it. Bookkeeping is an 'always-on' activity and a big part of the (sometimes last minute!) tax return process.
Earnr makes bookkeeping fast and simple. We connect to your bank account so that you can select the income and expenses that relate to your business. But, if you are self-employed, there is an even easier way to do it. Introducing...the trading allowance (launched by HMRC).
The trading allowance exists to help those on lower incomes reduce unnecessary admin. It works in one of two ways and it allows anyone to:
Unsure whether you've earned over £1,000? You can manage your business transactions in Earnr and view how much income you've made.
Once you've earned over £1,000, you have the choice of whether to use the trading allowance or not. It's a great approach to take in many scenarios:
These are meaningful savings, but it is worth considering whether the time and stress is worth it. The trading allowance isn't for everyone. There are two scenarios where it is not useful:
If you want to make use of the allowance in the Earnr app, you can skip past the expense classification and head straight to the tax return. You can also choose between Trading Allowance and Expenses when completing the Self Employment details on the Tax tab.
Earnr automates your day-to-day business and finance admin so you have more time to focus on growing and creating. Earnr can automate your tax return in just 17 minutes. Visit the app store to get started today.
Here’s the full tax guide to one of the fastest growing freelance roles out there: OnlyFans. We cover how OnlyFans creators can earn, what they can expense and how much they need to pay in tax.Read more
Making a buck in the world of crypto? If you’re transferring crypto to cash you’ll need to pay tax on it. Here’s what you need to know about how crypto gets taxed, and how to pay it.Read more