Originally Posted by
handmadeblanks
Hi angmc,
That is an excellent article but I think some of the information has been superseded by the new £1000 allowance introduced for 2017/2018 tax year. I haven’t found anything to suggest the allowance has been revoked. This means that a person can legally run a hobby business from home and as long as their income is below the £1000 threshold they do not need to declare anything to HMRC. But, you would still need Home Business Insurance, this is unambiguous to me.
Getting back to my original question though: If a person assesses that they are NOT trading according to the HMRC ‘nine badges of trade’ test, does this also mean they do not need Home Business Insurance?
Basically, do Insurance companies apply the same ‘nine badges of trade’ test as HMRC? If the answer is ‘no’, then does this create a contradiction i.e. you have Home Business Insurance even though you’ve told HMRC you aren’t trading.
I suppose we have to find out for ourselves by contacting the insurance providers.
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