From April 2017 two new annual allowances of £1,000, for trading and property income will be introduced.
This means that from 2017/18 individuals with property or trading income below £1,000 will no longer need to declare or pay tax on that income.
The trading allowance will also apply for Class 4 NIC purposes.
Those with income above the allowance will be able to calculate their taxable profit in the normal way or by deducting the relevant allowance.
The new allowances will not apply to partnership income from carrying on a trade, profession or property business in partnership.
The allowances will not apply in addition to relief given under the Rent-a-Room relief.
For more information, please contact Lesley Sutton on 01484 550037 or email email@example.com.