It seems that several measures previously revealed in the UK government budget of 2016, expected to come into force this year, that would have helped consumer sellers trading online, have been dropped from the government’s legislative programme. You can read more here.
The plan was that UK tax payers could make as much as £1000 per year selling on eBay, or maybe renting out a room via AirBnB, without needing to file a tax return or pay HMRC a penny.
Financial secretary to the Treasury Jane Ellison told the House of Commons that “the Bill is progressing on the basis of consensus and therefore, at the request of the opposition, we are not proceeding with a number of clauses. These provisions will make a significant contribution to the public finances, and the Government will legislate for the remaining provisions at the earliest opportunity, at the start of the new Parliament.”
Other measures that will impact SMEs have also been lost from the Finance Bill with the impending General Election including the reduction of the dividend allowance from £5000 to £2000 supposed to be introduced in April 2018. Pension allowance cuts have also been delayed.
The £1000 allowance won’t be much missed by professional online sellers but still an annoyance to those who sell on a small scale on online marketplaces.