Tax & pay · 2026/27

Trading allowance versus expenses calculator UK

Compare a £1,000 trading allowance with actual deductible expenses in a simple eligible case. Check the formula, worked example and limits before using your own figures.

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Your estimate

Lower non-negative profit base in comparison

£3,500.00
Using trading allowance£4,000.00
Using actual expenses£3,500.00

Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Confirmed eligible income only. You cannot deduct both the allowance and the same actual expenses. Loss claims, excluded connected-party income, partnerships, filing obligations and election rules are not decided.

How the trading allowance versus expenses calculator uk works

Compare max(0, gross income − £1,000) with max(0, gross income − actual expenses).

UK data and rules

2026/27 data · Checked 16 October 2026. Rules are a dated snapshot, not a live feed.

Read about data coverage and updates

Worked example: trading allowance versus expenses

This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.

Gross eligible trading income (£)
5,000
Allowable actual trading expenses (£)
1,500

Lower non-negative profit base in comparison: £3,500.00

Compare max(0, gross income − £1,000) with max(0, gross income − actual expenses).

Trading allowance versus expenses: questions answered

What does the trading allowance versus expenses calculation include?

Compare max(0, gross income − £1,000) with max(0, gross income − actual expenses). Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. Confirmed eligible income only. You cannot deduct both the allowance and the same actual expenses. Loss claims, excluded connected-party income, partnerships, filing obligations and election rules are not decided.

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Using your result

Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.

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