Jo Bateson, private client tax partner at KPMG in the UK comments on the changes to make it easier for the micro-entrepreneur announced in today’s budget.
Commenting on the changes to make it easier for the micro-entrepreneur announced in today’s budget, Jo Bateson, private client tax partner at KPMG in the UK, said:
“One consequence of the drive for digital innovation has been an increase in the ‘micro-entrepreneur’, earning small amounts of income from internet based activity. The Chancellor has confirmed that he wishes to support this form of entrepreneurism and has announced two new tax-free allowances.
“The Chancellor has accepted that for these individuals the current tax rules can seem daunting or complex. As a result he has announced that from April 2017 there will be 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 relating to the trade or property.
“There is limited information on the allowances available for those who, for example, use the likes of Airbnb to rent their room. We will need to wait to see how these two new allowances will interact with other existing allowances and the overall benefit to taxpayers before drawing a firm conclusion.”
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