MSE News: £1,000 tax breaks dropped by Government will be back in new finance bill

Former_MSE_Megan_F

Two tax breaks for online sellers and room renters worth £1,000 a year each are set to be introduced after the summer, the Government has announced....

Read the full story:
'£1,000 tax breaks dropped by Government will be back in new finance bill'

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HornetSaver

I usually read the phrase "tax breaks" with caution, because even if it's my gain the chances are I'll be paying for it in some other way (and in this very article you can see some examples of the other side). But this is a no-brainer. People who sell bits and bobs on a more than occasional but nowhere near commercial or full time basis need certainty, while people who are seriously thinking about setting up a business would benefit from the toe in the water approach, in the knowledge that there are no tax implications if it doesn't really take off.

It'll pay for itself in the form of HMRC inspectors going after bigger fish.

IDeamOfFairies

One allowance applies to those who earn extra income through "occasional jobs", eg, activities like selling items online, giving lifts in their car or sharing power tools.

https://www.autoebid.com/blog/insurance-tips/how-car-sharing-could-affect-your-insurance-policy
How car-sharing could affect your insurance policy

Did you know that offering your work colleague a lift to work risks having your car insurance cancelled?
Many motorists who regularly allow passengers to join them on their commute to work are falling foul of exclusions in the small print of their insurance.



The passenger will often pay a small amount towards the cost of the journey, which is where the policy becomes invalidated.

A significant minority of insurance policies do not cover this, and some will tear up a policy or refuse to pay out after an accident.

There are policies that do cover car-shares, however, an insurer would be able to refuse to pay out if it discovers that the driver is demanding more money to be paid by the passenger than the actual cost of the journey.

If this is the case, then the driver would in effect be classed as using their vehicle as a taxi, which is not covered by one in ten motor insurance policies, according to comparison site GoCompare. These policies do not cover drivers who are signed up to lift-sharing arrangements.

michaels

Looks like a tax increase on airbnb to me by taking the income out of the scope of rent a room. This would also no doubt also bring it into the remit of being assessed for benefits and tax credits purposes giving very high effective marginal rates for those who currently use it as an extra source of income to top up benefits.

davidgmmafan

Whilst it is worth everyone checking the policy I thought it was the case that passengers (this could even be family!) making a contribution to the cost of the journey so long as that contribution doesn't exceed the cost of the journey.

I think I've seen this in a standard insurance policy but I could be wrong.

k18dan

How will it be back dated?

Kayalana99

davidgmmafan wrote: »

Whilst it is worth everyone checking the policy I thought it was the case that passengers (this could even be family!) making a contribution to the cost of the journey so long as that contribution doesn't exceed the cost of the journey.

I think I've seen this in a standard insurance policy but I could be wrong.

That's what the above says too, you can give money for petrol but not for the time it takes you.