As part of the Government’s March 2016 budget, individuals who sell services or rent their properties online will not have to declare or pay tax for the first £1,000 per year that they earn from each source.
With specific reference to eBay and the holiday lettings site Airbnb, the tax breaks were introduced by George Osborne with the intention of boosting the number of “micro-entrepreneurs” who make small amounts of money online. The budget introduces two new £1,000 allowances for property and trading income with the aim of making the tax position more certain and simple for individuals who sell items occasionally.
Despite the digital focus of the announcement, it is not just intended for online businesses, but is also available to self-employed people with trading or property income via more traditional means such as car boot sales.
The introduction of the new allowance will highlight and send a message to those earning above the limit that their income could be taxable.
It is important that we understand all sources of income for our clients, to ensure that we can give you the best advice and generally and for your tax affairs. If you have any queries please contact Jackie or Andrew on 01625 524127.