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tax advice / 3 posts found

Tax-free property and trading allowances

by mike tombs
in Tax
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Since April 2017, you can earn £1,000 from a trading activity and £1,000 of property related income, without being liable to income tax. These tax-free allowances on property and trading income are useful as families can generate an extra £2,000 a year of income without increasing their tax bills. Obviously, these small amounts will not be a replacement for your day-job, but they do contribute to financing your monthly bills.   What property income could this cover? You could rent out: your drive as a parking space if you live in an area where parking spaces are at a premium, [...]

What will HMRC avoid telling you?

by mike tombs
in Tax
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There are three things that you can count on that HMRC will do:   Calculate the amount of tax you owe based on the information they have gathered. Chase you for payment of this tax if not recovered by PAYE. Pursue you if they believe you have under-declared your taxable income or made excessive claims to reduce your tax.   What they will not do is advise you to maximise the benefit of reliefs and allowances to which you are entitled to claim.   HMRC rely to some extent on the age-old principal that ignorance of the law is not, [...]