Now you see it, now you don’t
Now you won’t – Oh now you WILL be taxed on selling crafts online and renting out a room
Tax breaks – The Government has quietly scraped tax breaks on what is called the ‘micro-entrepreneurs’ (as part of the “sharing economy”) just days after they were supposed to be introduced on April 6 had even started. One was for property and the other for trading.
First announced in the 2016 budget, each tax relief was going to be £1,000. The new rules had meant that anyone earning less than £1,000 through renting out a room or their drive, or selling goods online, would not have to pay tax.
The Government pulled it out of the Finance Bill ahead of the election.
This means that millions of people possibly selling items online on a regular basis will need to notify the taxman or fill out a tax return every year, or else risk a fine!
These were separate to the current “rent-a-room” tax relief scheme, which does allow people to earn up to £7,500 a year tax free when letting out furnished accommodation. This remains unaffected
The bill seems to now have been stripped right back ahead of the snap general election on June 8th.
It is estimated that just under a million people last year who were making money online failed to submit a tax return.