Скачать или смотреть HMRC Badges of Trade Explained | Are You Trading or Not in the UK (2025-26)? | Pro Tax Accountant

Do you sell online, invest in property, or run a small side business? Then you need to understand HMRC’s Badges of Trade — the key principles used by HMRC to decide whether your activity counts as a trade or just a hobby. In this detailed video, PTA (Pro Tax Accountant) explains exactly what these badges are, how they affect your tax obligations, and what they mean for UK taxpayers in the 2025-26 tax year.

To read the full article with examples and professional insights, visit: https://www.protaxaccountant.co.uk/po...

In this video, you’ll learn:
• What the HMRC Badges of Trade are and why they matter for anyone earning extra income in the UK.
• How HMRC uses these badges to decide if your income should be taxed as trading income or capital gains.
• The nine main Badges of Trade, including:

Profit-seeking motive.

Number and frequency of transactions.

Nature and type of the asset sold.

Modifications or improvements made to increase its value.

The way the sale is carried out.

The length of ownership before sale.

Circumstances leading to the sale.

Supplementary work done to make the sale profitable.

Financial arrangements used to acquire the asset.
• How these principles apply to modern income sources like online selling, crypto trading, property flipping, and gig economy activities.
• The implications of being considered a “trader” by HMRC — including tax registration, Self Assessment, allowable expenses, and reporting duties.
• The difference between a hobby and a trade, and how intention and pattern of behaviour determine your tax position.
• What steps to take if you’re unsure whether your activity qualifies as trading.
• How professional accountants like PTA (Pro Tax Accountant) can help you assess your position, register correctly, and stay compliant with HMRC regulations.
• Why this is especially important in 2025-26, as HMRC’s digital tracking systems and data-sharing agreements continue to expand to detect undeclared income.

By understanding these badges, you’ll be better prepared to manage your taxes, avoid penalties, and make informed financial decisions about your side business or investments.

If you need expert guidance on HMRC compliance or tax planning tailored to your unique situation, our qualified professionals are here to help you every step of the way.

📞 Contact Pro Tax Accountant (PTA)
WhatsApp / Phone: 07985689912
📧 Email: [email protected]

Disclaimer: The information in this video and description is for general educational purposes only and should not be taken as specific tax or legal advice. Each individual’s financial situation is unique, and professional advice should always be obtained before making tax decisions. Neither PTA (Pro Tax Accountant) nor the video creator accepts liability for any loss or damage arising from reliance on this information.

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