 | As we approach the end of the tax year, It’s worth reminding you of some useful reliefs to enable you to consider if you owe any tax or indeed need to complete a tax return. |
- Property Allowance – £1,000
- Trading Allowance - £1,000
- Rent a room relief - £7,500
Property and Trading Allowance - Where the £1,000 allowances cover allof the income (no expenses are ever allowed) then you don’t need to declare it. In the case of these being your only other source of income it means you don’t need to do a tax return anymore.
So for example, you’re a teacher and you do some tuition earning £15 a week then previously you should have completed a tax return and provided you don’t have any income other that your PAYE salary then you probably don’t need to do a tax return. There is quite a bit more to this particularly where people have a main sole trade and a ‘hobby business’ and the detail can be found on this link.
The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else. You can let out as much of your home as you want. If income falls below this limit (as with the above reliefs, you can’t deduct costs), then the relief is automatic and provided there is no other reason to complete a tax return, you don’t need to do one.
Follow this link for more information.
As a reminder if you need to complete a tax return you must register by 5thOctober to be sure to avoid a penalty. It’s important to note that if you do need to complete a tax return and fail to do one, HMRC ‘not sending you one’ is not considered a reasonable excuse if you are subject to a compliance check.
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