{"id":3526,"date":"2021-03-11T04:00:00","date_gmt":"2021-03-11T04:00:00","guid":{"rendered":"http:\/\/im-21515"},"modified":"2023-01-11T11:11:07","modified_gmt":"2023-01-11T11:11:07","slug":"reminder-what-are-badges-of-trade","status":"publish","type":"post","link":"https:\/\/www.oneaccounting.co.uk\/reminder-what-are-badges-of-trade\/","title":{"rendered":"Reminder, what are badges of trade"},"content":{"rendered":"<p>The &#39;badges of trade&#39; 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.<\/p>\n<p>They are useful when&nbsp;careful consideration needs to be given to deciding whether a&nbsp;hobby has become a taxable activity. 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.<\/p>\n<p>HMRC will consider the following nine badges of trade as part of their overall investigation as to whether a hobby is actually a trade:<\/p>\n<ul>\n<li>Profit-seeking motive<\/li>\n<li>The number of transactions<\/li>\n<li>The nature of the asset<\/li>\n<li>Existence of similar trading transactions or interests<\/li>\n<li>Changes to the asset<\/li>\n<li>The way the sale was carried out<\/li>\n<li>The source of finance<\/li>\n<li>Interval of time between purchase and sale<\/li>\n<li>Method of acquisition<\/li>\n<\/ul>\n<p>Even if HMRC consider that the activities in question are a trade, taxpayers can make up to &pound;1,000 per year from their hobby using the trading allowance that was introduced in 2017.<\/p>\n<div style='font-size:smaller' class='im_source'>Source: HM Revenue &#038; Customs   Wed, 10 Mar 2021 00:00:00 +0100<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The &#8216;badges of trade&#8217; tests whilst not conclusive<\/p>\n","protected":false},"author":1,"featured_media":3527,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[134,1],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - 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