From April 2017, individuals can claim a new trading and property allowance of £1000.
Income less than £1,000:
For individuals in receipt of small amounts of trading, miscellaneous or property income, if relevant income does not exceed the £1,000 allowance there is no need to register for Self Assessment and declare or pay tax on that income.
Income more than £1,000:
If relevant income exceeds the allowance, the individual can either:
• elect to deduct the £1,000 allowance instead of claiming tax relief for allowable expenditure
• claim actual costs.
The allowance is not available to partners in a partnership.
The allowance is not available to rent-a-room trades or receipts.
The allowance is not available to FHL.
The allowance is not available if an individual receives a tax reduction for non-deductible interest.
Directors or sole traders who work from home may not claim for the property.
The income cannot be the result of employment.
If you sell on eBay, or you receive a miscellaneous income, or your property expenses are lower than £1,000 every year, you may find this new policy can save you taxes. Please contact us so that we can create a more tax efficient plan for you.
(last edited on 18 Jan 2018)
The above information and calculations are for illustrative purposes only. No liability is accepted by O’Brien S & Co Ltd for any actions or losses from investment in reliance on the information and calculations. Consult a qualified professional financial advisor before making any financial decisions. O’Brien S & Co Ltd holds the copyrights in all materials on the website. All rights reserved.