To reduce Self-Assessment compliance for individuals who have a of small amounts of trading or property income two new annual tax allowances of £1,000 for “Trading” and “Property” income are available. These allowances can be claimed from 6 April 2017.
If receipts are less than £1,000 no declaration is required. You will not have to register for Self-Assessment or, if you already receive a Self-Assessment Return, you can deregester. Where the source exceeds £1,000 the individual must register for Self-Assessment and can either claim expenses in the normal way or elect for £1,000 to be deducted from that income rather than claiming actual expenses.
The property allowance will not apply to income on which rent-a-room relief is given or where there is a restriction on mortgage interest.
For more information check the Revenue’s website here.
Published 13 September 2017.
Updated 15 October 2017.