The thresholds at which trading, property and ‘other taxable’ income need to be reported to HM Revenue & Customs (HMRC) through a Self Assessment Tax Return will be aligned and changed to £3,000 (gross) each.
Instead of reporting through a Tax Return, individuals will be able to report their relevant taxable income which is below the £3,000 threshold to HMRC through a new digital reporting service, although those affected can choose to remain in Self Assessment should they wish.
This change to the Self Assessment reporting criteria does not change the amount of tax due, it only changes the method of reporting. In addition, the £1,000 tax-free trading allowance will remain the same.
It is expected that this change will remove the requirement for up to 300,000 taxpayers to submit a Self Assessment Return.
The changes will take place within this Parliament, with further details to be provided later this year upon publication of the government’s transformation roadmap.
Rachel Roberts is a Private Client Tax Assistant Manager and would be happy to chat through any queries or concerns you have on 01242 776000 or rachel.roberts@randall-payne.co.uk.
