10th April 2017
Clarity and guidance are needed on the new property and trading income allowances, according to the Low Incomes Tax Reform Group (LITRG).
A £1,000 allowance for property income and a £1,000 allowance for trading income are available for 2017/18.
Individuals who have income below the allowance will be able to deduct £1,000 instead of claiming the actual allowable expenses.
The tax group recommends the following guidance:
- who can use the allowances
- when business records need to be kept
- when to inform HMRC about trading business and property income.
Anthony Thomas, chairman at the LITRG, said:
“Clear and detailed guidance must be available as soon as possible and HMRC must publicise these tax reliefs more widely to ensure that people know when and how to claim them. This guidance should clarify what trades and income can benefit from using the trading allowance."
Contacts us to discuss whether you can benefit from the new allowances.