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In today’s rapidly evolving economy, the UK government is taking significant steps to make tax processes simpler and more efficient, all while boosting the nation’s competitiveness. One of the exciting announcements to come out of the tax minister’s speech today (11 March) is a new measure to make tax relief more accessible. The government is also rolling out a series of other reforms that could impact part-time business, established entrepreneurs and event content creators.
If you’re one of the millions of people in the UK juggling a side hustle—whether you’re selling clothes online, walking dogs, or creating content—you’ll be pleased to hear that up to 300,000 people will no longer need to file a Self-Assessment tax return. This includes small-scale entrepreneurs and people with side incomes who previously had to deal with the complexities of tax reporting.
This reform is part of a larger plan to modernise the tax system, making it quicker, fairer, and more efficient. It will give time back to entrepreneurs to focus on growing their businesses rather than spending hours filling out forms.
For those who do still need to report their earnings, there’s more good news. The government is increasing the Income Tax Self-Assessment (ITSA) reporting threshold from £1,000 to £3,000. This means that people with trading income under £3,000 won’t have to go through the hassle of reporting their income to HMRC, freeing up time for them to focus on other aspects of their business. This change, benefiting around 300,000 taxpayers, is expected to simplify the reporting process and make it easier for people to comply with their tax obligations.
With so many tax reforms on the horizon, you may be wondering how these changes affect you and your business. Here’s how, as online accountants, we can support you through these transitions:
For those impacted by these changes, it’s important to stay informed and seek professional advice where necessary. Whether you’re a content creator, an online seller, or a business owner, an online accountant can help you navigate these shifts with ease.
At CloudAccountant.co.uk we are committed to helping you take control of your finances, so you can focus on what matters most: growing your business. If you’d like to know more about how we can help, you can speak to one of our team by completing the form on our website, emailing: team@cloudaccountant.co.uk or giving us a call on 01625 546 232.