Up to 300,000 taxpayers will no longer have to file a self assessment tax return as Treasury increases annual threshold for reporting from current £1,000 figure but not until 2027
At the same time, HMRC is launching a dedicated service for accountants and tax agents to allow them to resolve PAYE and self assessment queries that have been outstanding with HMRC for more than four weeks with the help of a dedicated staffer.
The increase in the current annual trading threshold from £1,000 to £3,000 a year is designed to help eliminate some of the confusion about what tax is payable on side hustle sales.
The Treasury told Business & Accountancy Daily that the change to threshold reporting ‘will be before the end of this parliament’, and is likely to come into effect from 2027-28 tax year. As HMRC has to develop an alternative online service to report and pay any unpaid tax, the change cannot come in any sooner.
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