As Wimbledon, Notting Hill Carnival, music festivals and other summer events are upon us, it is worth discussing HMRC’s intention to crackdown on those people who earn income from such events but do not declare it on a tax return.
You may think that you only need to declare income from the rental of your property, which is conveniently placed nearby, however, sundry income from renting out the car parking space on your drive or the front lawn for a vendor to sell souvenirs may also be taxable.
However, from 6th April 2017, there are two new trading allowances available which may cover the income on renting out the parking space, or selling ice-cream and lemonade from your garden. The allowances are £1,000 each (one for property and one for trading), so as long as your income does not exceed this amount, you will no longer need to declare or pay tax on this income.
Remember that you can use the Rent a Room scheme for letting out furnished accommodation in your home.
Call us on 01753 869549 if you wish to discuss your concerns or clarify any points raised.