Relaxation of self-assessment threshold
HMRC has promised a change to the threshold at which self-employed taxpayers need to complete a tax return. What do we know so far?
Currently, those with trading income exceeding £1,000 must submit a tax return each year, even if they do not have any tax to pay. HMRC has announced that the threshold will increase to £3,000, which it estimates will mean up to 300,000 people no longer needing to submit tax returns. There is no firm date for this, with the government saying that it will happen “within this parliament”, i.e. before the next general election.
The threshold applies to the gross income the self-employed person earns in a tax year, i.e. before deducting any expenses. Some affected individuals will still have an income tax liability, and HMRC intends to launch a “simple” online service to collect the tax in the absence of a self-assessment tax return. However, there is no information about what this will look like or how it will work yet.
Related Topics
-
Mandatory payrolling of benefits in kind delayed
The government has revised plans to introduce the mandatory payrolling of benefits in kind from 6 April 2027, which will now be limited to company cars, vans, fuel and medical benefits. What's the full story?
-
Personal vs company donation to charity
You’re an owner manager and want to make a £5,000 donation to a local charity. You’ve claimed income tax relief under the gift aid scheme for smaller amounts but could it be more tax efficient to make the donation via the company?
-
Uber loses VAT margin scheme appeal
The Court of Appeal has ruled that Uber cannot use the Tour Operators Margin Scheme (TOMS) when accounting for VAT on its ride-hailing services. The decision could have significant implications for businesses that act as intermediaries when supplying services to consumers. What was the dispute about?