Budget 2016

NewShadow · 16 March 2016 at 2:03PM

eBay being mentioned in the budget - VAT changes for non-uk sellers storing stock in the UK.

Some changes to small business rates.

Anyone noticed anything else interesting?

ballisticbrian · 16 March 2016 at 3:53PM

I didn't notice that bit to be honest. More on my mind is the postage increases at the end of the month which considering fuel costs lower than last year and no inflation to speak of, it's an unexpected hike with 5% on a franked airmail large letter.

winspiration · 16 March 2016 at 5:26PM

£1000 extra tax allowance for selling on ebay / other income earned online sounds interesting - haven't had time to look at the detail yet though.

winspiration · 16 March 2016 at 8:13PM

Had a skim through the detailed documentation:

VAT threshold

Up to £83K from April 2016

Class 2 NICs

To be abolished from April 2018 - in the meantime there's a consultation about the self employed and access (or not...) to benefits. As it only costs a couple of quid a week, I suspect it costs more to police / collect than the revenue obtained.

The 'Sharing Economy'

From April 2017 - 2 new £1000 Allowances, one for property, one for trading income. What the documentation actually says:

1.170 The rapid growth of the digital and sharing economy means it is becoming easier for more and more people to become ‘micro-entrepreneurs’. However, for those making only small amounts of income from trading or property, the current tax rules can seem daunting or complex. To help make the tax position more certain and simple for these individuals, from April 2017 the Budget introduces two new £1,000 allowances for property and trading income. Individuals with property income or trading income below the level of allowance will no longer need to declare or pay tax on that income. Those with relevant incomes above £1,000 can benefit by simply deducting the allowance instead of calculating their exact expenses.

2.25 Property and trading income allowances – From April 2017, the government will introduce a new £1,000 allowance for property income and a £1,000 allowance for trading income. Individuals with property income or trading income below £1,000 will no longer need to declare or pay tax on that income. Those with income above the allowance will be able to calculate their taxable profit either by deducting their expenses in the normal way or by simply deducting the relevant allowance. (Finance Bill 2017) (33)

I suppose it depends on what they class as expenses as to whether there will be any actual benefit from this or not if you make a substantive income from ebay.

Tax administration changes

Simple Assessment Following the consultation announced at Spending Review and Autumn Statement 2015, the government will legislate to provide a new power to allow HMRC to make an assessment of a person’s Income Tax and Capital Gains Tax liability without them first being required to complete a self-assessment return and where it has sufficient information about that individual to make the assessment. (Finance Bill 2016) 2.212

Making Tax Digital – From 2018 businesses, self-employed people and landlords who are keeping records digitally and providing regular digital updates to HMRC will be able to adopt pay-as-you-go tax payments. This will enable them to choose payment patterns that suit them and better manage their cash flow. The government will also explore options to simplify the tax rules for these groups. The government will consult on these measures in 2016 alongside publishing detailed proposals for other elements of the Making Tax Digital programme announced previously. (Finance Bill 2017)

Tax evasion

2.196 Tackling the Hidden Economy: Conditionality – The government will consult, over the summer, on the principle of making access to licenses or services for businesses conditional on them being registered for tax. This will include consideration of what services or licenses could be conditional on registration, and ways to minimise burdens on business.

2.197 Tackling the Hidden Economy: Tougher sanctions – The government will consult, over the summer, on new sanctions on those who repeatedly and deliberately participate in the hidden economy, including penalties and monitoring of repeat offenders.

2.198 Tackling the Hidden Economy: Access to data held by Money Service Businesses – The government will consult, over the summer, on new powers to enable HMRC to gather data held by Money Service Businesses for tax compliance purposes. This is ahead of potential legislation in Finance Bill 2017.

2.199 Tackling the hidden economy: Access to data held by online intermediaries and operators of digital wallets – Following an announcement made at Summer Budget 2015, the government will now legislate in Finance Bill 2016 to extend HMRC’s powers to obtain
data from online intermediaries and electronic payment providers to find those operating in the hidden economy. (Finance Bill 2016)

So looks like we may have to verify tax registration with more than just Amazon in future.

In the unlikely event that you want to read the whole thing, it's here:

https://www.gov.uk/government/publications/budget-2016-documents

forgotmyname · 18 March 2016 at 2:44AM

Sanctions for participating in the hidden economy, oh dear will I be in trouble buying from Chinese sellers that are really in the UK and post from the UK?

tonehtigah · 20 April 2016 at 2:16PM

winspiration wrote: »

£1000 extra tax allowance for selling on ebay / other income earned online sounds interesting - haven't had time to look at the detail yet though.

Can anyone find more details about this? I have looked at information on google and on MSE website, but can't seem to find the answer to my question.

My question is, does selling old items I no longer need count towards this £1000 allowance? I have been thinking of starting to make and sell some handmade goods on eBay, but I already use eBay a lot for getting rid of old clothes and stuff that I don't need. Would this £1000 be applicable only to items I make and sell for a profit, or my whole eBay activity including second hand selling?

I'm not thinking I'm going to instantly make £1000+ making and selling, just that if I sell our old mobile phones this year when we upgrade that would take a huge wack out of that allowance already!

Thanks to anyone who can help!

mrcol1000 · 20 April 2016 at 2:55PM

tonehtigah wrote: »

Can anyone find more details about this? I have looked at information on google and on MSE website, but can't seem to find the answer to my question.

My question is, does selling old items I no longer need count towards this £1000 allowance? I have been thinking of starting to make and sell some handmade goods on eBay, but I already use eBay a lot for getting rid of old clothes and stuff that I don't need. Would this £1000 be applicable only to items I make and sell for a profit, or my whole eBay activity including second hand selling?

I'm not thinking I'm going to instantly make £1000+ making and selling, just that if I sell our old mobile phones this year when we upgrade that would take a huge wack out of that allowance already!

Thanks to anyone who can help!

You don't have to declare selling personal items you no longer need. Only if you brought them purely to then sell for a profit (regardless if you are a "business" or not). It is only things you sell for profit (ie buy to sell or make to sell) that counts towards the £1000.

ballisticbrian · 20 April 2016 at 3:43PM

Reading between the lines, I think that this "give away" that's been included in the budget is simply a means to later on tell us they are going to use more heavy handed tactics to tax everything over £1000. I'm not sure how they would achieve this, but you can get the general idea.

winspiration · 20 April 2016 at 6:11PM

mrcol1000 wrote: »

You don't have to declare selling personal items you no longer need. Only if you brought them purely to then sell for a profit (regardless if you are a "business" or not). It is only things you sell for profit (ie buy to sell or make to sell) that counts towards the £1000.

This ^^^ which is confirmed in writing on this HMRC information page: https://www.gov.uk/income-from-selling-services-online

I was looking for some more detail on the £1,000 allowances, but there isn't anything yet, probably I suppose because it doesn't come into effect until the tax year starting next April.

tonehtigah · 21 April 2016 at 9:05AM

Thanks for the info, and helping out a newbie!

I did know it didn't come into effect until next year, but getting myself bogged down over the last few weeks thinking about it and what would count and not count I seemed to have totally forgotten that fact!

Looks like I will put my thoughts of making and selling on hold for a year.

ballisticbrian · 21 April 2016 at 9:29AM

I had a quick think, and maybe it could work like this; eBay accounts registered as business - pay tax in the usual way, all other accounts when reaching £1000 billed for tax at source levied via eBay systems.

Budget 2016

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