Are you part of the 'sharing economy'? If you market your crafts online through Etsy, regularly make money from selling goods on eBay or rent out your home on a website such as Airbnb, make sure you're on the right side of the taxman, because the law has changed.
In 2016, we were told that the government would bring in two tax breaks to help 'micro-entrepreneurs' – one for property and one for trading – to allow enterprising individuals to earn up to £1,000 a year tax free.
However, these proposals were quietly dropped in May 2017, so make sure you know the score:
• If you're selling items online on a regular basis, you're technically a trader and must tell HMRC.
• You'll need to fill in a tax return and pay tax on any profit. See gov.uk/set-up-sole-trader.
• You may have to pay tax if you rent out your home for business purposes, do cleaning or odd jobs for cash, or hire out equipment such as power tools or hairdressing kits.
• However, if you're signed up to the Rent-a-Room scheme to take in lodgers, some tax reliefs remain available, so check with HMRC.
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