New trading and property income allowances

From April 2017, trading income and property income under £1,000 each will not need to be declared to HMRC nor tax paid on it. If you have such income over £1,000, you can deduct £1,000 from your taxable income instead of your exact expenses.

This is designed to prevent people with small amounts of income from sources such as renting out their home whilst on holiday from having to complete a tax return purely for this reason.

Planning point: Note that these allowances are in respect of income/turnover, not profit. If you have property income of £1,500 and expenses of £700, you will need to declare this income. Note though that you could opt to offset the £1,000 allowance against the £1,500 income instead of y