28 Feb Are You Planning to Take Advantage of Additional Tax Free Allowance from 6 April 2017
Are You Planning to Take Advantage of Additional Tax Free Allowance from 6 April 2017
As well as the present £5,000 tax free divided allowance and the saving allowance of £1,000 there will be two additional tax allowance beginning 6 April 2017.
There is going to be a new £1,000 tax free allowance for self-employed earnings plus a £1,000 rental income allowance.
These particular allowances mean that people carrying out a smaller amount of self- employed work or getting small amount of rental income won’t need to have to report such income and consequently could fall outside self-assessment.
Please note that the £1,000 allowance would be the gross amounts which will be tax free each and every year. When the gross income is more than £1,000 there will be a option of paying tax on the access over £1,000 or deducting allowable expenditures in a normal way.
Rent A Room Relief
While on the topic of tax free allowance don’t forget that there’s an additional £7,500 a year allowance deducted from rent received from lodgers where you rent out part your main residence
This specific allowance has gone up from £4,250 from 6 April 2016 to £7,500. Rent from lodgers up to this amount is tax free. When the income from lodgers exceeds £7,500 a year only the excess is taxable.