Tax Diary September/October 2022
The Rent a Room Scheme lets you earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home. This is halved if you share the income with your partner or someone else.
To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.
There is no tax to pay on trading income or earnings from land and property as long as the income from each of these two sources does not exceed £1,000.
If you’re a sole trader running a small business, it is safe to say that you’ll be incurring business expenses.
The government has announced an extension to the Recovery Loan Scheme (RLS) from August 2022.
From mid-September, HMRC is set to introduce a recurring direct debit option for employers using the PAYE system.