AM I TRADING? CHECKER
AM I TRADING? Checker
Six questions on HMRC’s badges of trade. Find out whether your selling is a hobby or a business, and what the £1,000 allowance covers.
Am I Trading?
Selling your old things is not trading and never has been. Buying things to sell them is, from the very first sale. Six questions, based on the tests HMRC actually applies, and a straight answer at the end.
Answer the six questions
Nothing is sent anywhere. The whole thing runs in your browser.
Indicative only. Trading is decided on the whole picture rather than on six answers, and the boundary cases are genuinely arguable. If you are near it, the cheap move is to ask before HMRC does.
What to do next
Register for Self Assessment by 5 October following the end of the tax year you started in, then keep records from the first sale rather than reconstructing them later. The new seller checklist covers the whole of it in about two hours.
Open the setup checklistFAQs
Can’t find the answer you’re looking for? Please chat to our friendly team.
We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
RESOURCES
Fresh takes on business and accounting.
Trading profit is split on a time basis. Interest, rent, gains, donations and dividends each follow their own rule, and mixing them up misstates both accounting periods.
A long period of account needs two separate capital allowances computations, and since April 2026 they are not even calculated at the same writing down rate.
Company law allows accounts to run for 18 months; corporation tax never allows an accounting period longer than 12. Here is how the split is drawn.
CONTACT
Get in touch
