HMRC to increase trading allowance to £3000

TimeLord1

RFW said:

TimeLord1 said:

Again they're releasing the guidance and it isn't official. Timescale is possibly 4 years time.


"Within this parliament – or by the end of 2029 – the threshold for filing a Self Assessment tax return for trading income will rise from £1,000 to £3,000"


How many people will read this and believe it's now law by the various articles. The Government has announced nothing until it becomes lawful.

Odd isn't it? When they ever announce VAT threshold increases they're usually in the Budget and in place quite quickly.

As no one is asking my opinion I'll give it! I think they should raise it higher and encourage and assist those micro traders to grow. At the same time I'd increase fines for those who don't declare. There's a lot of misinformation and few guides for anyone starting out.

RFW said:

TimeLord1 said:

Again they're releasing the guidance and it isn't official. Timescale is possibly 4 years time.


"Within this parliament – or by the end of 2029 – the threshold for filing a Self Assessment tax return for trading income will rise from £1,000 to £3,000"


How many people will read this and believe it's now law by the various articles. The Government has announced nothing until it becomes lawful.

Odd isn't it? When they ever announce VAT threshold increases they're usually in the Budget and in place quite quickly.

As no one is asking my opinion I'll give it! I think they should raise it higher and encourage and assist those micro traders to grow. At the same time I'd increase fines for those who don't declare. There's a lot of misinformation and few guides for anyone starting out.

I think a lot of this was due to lockdown and the economy was still growing online, so they put the tax compliance on the various platforms to pay their fair share. But since last year all online business has done is retract, sales are down and people have given up.  Lots more selling at boot sales also some councils are policing what can be sold at them again that is to stop fake goods or avoiding taxes.

But the online legislation is dated people have been doing digital taxes since the mid 90's and being self employed has become unavoidable with zero hours contracts and that's probably pushed people into making a living or side hustle online to balance the cost of living.

Dazed_and_C0nfused

RFW said:

TimeLord1 said:

Again they're releasing the guidance and it isn't official. Timescale is possibly 4 years time.


"Within this parliament – or by the end of 2029 – the threshold for filing a Self Assessment tax return for trading income will rise from £1,000 to £3,000"


How many people will read this and believe it's now law by the various articles. The Government has announced nothing until it becomes lawful.

Odd isn't it? When they ever announce VAT threshold increases they're usually in the Budget and in place quite quickly.

As no one is asking my opinion I'll give it! I think they should raise it higher and encourage and assist those micro traders to grow. At the same time I'd increase fines for those who don't declare. There's a lot of misinformation and few guides for anyone starting out.

Will this change actually help achieve that aim?

It is simply a change to how you declare a particular type of taxable income.  It doesn't in alter who needs to report this income.

RFW

Dazed_and_C0nfused said:

Will this change actually help achieve that aim?

It is simply a change to how you declare a particular type of taxable income.  It doesn't in alter who needs to report this income.

There's a chance it could encourage them. I see people who try and avoid paying tax and stay in the shadows who could actually run a successful business and end up paying proper taxes. It needs a good structure to it. There's quite a lot of free support for small businesses but it's tricky to find if you're not in or near a big city.

RFW

TimeLord1 said:

I think a lot of this was due to lockdown and the economy was still growing online, so they put the tax compliance on the various platforms to pay their fair share. But since last year all online business has done is retract, sales are down and people have given up.  Lots more selling at boot sales also some councils are policing what can be sold at them again that is to stop fake goods or avoiding taxes.

But the online legislation is dated people have been doing digital taxes since the mid 90's and being self employed has become unavoidable with zero hours contracts and that's probably pushed people into making a living or side hustle online to balance the cost of living.

I don't think governments have ever really caught up to how people earn money in the gig economy. There are bits of legislation but nothing much and little to no support.

There has been a steady retraction online, mostly down to shipping costs and overall inflation.