The ATT has proposed an amendment to the Finance Bill provisions introducing the new £1,000 trading allowance from April 2017, with the aim of removing a disadvantage to established sole traders who start up a smaller, second trade.
The ATT has proposed an amendment to the Finance Bill provisions introducing the new £1,000 trading allowance from April 2017, with the aim of removing a disadvantage to established sole traders who start up a smaller, second trade.
As drafted in Sch 3 to the second Finance Bill 2017, the rules combine all of the income from an individual’s ‘relevant trades’. This means full relief will not be available if the combined income from both trades exceeds £1,000 and partial relief will not be attractive as the individual will be prevented from deducting the expenses incurred in their main trade.
The ATT’s suggested amendment would, broadly, exclude the receipts of a main trade from the definition of ‘relevant income’ and prevent possible abuse by requiring the qualifying micro-business to be wholly distinct and unrelated to the main trade.
The proposal is contained in the ATT’s written evidence submitted to the Finance Bill Committee at http://bit.ly/2y5sHRd.
The ATT has proposed an amendment to the Finance Bill provisions introducing the new £1,000 trading allowance from April 2017, with the aim of removing a disadvantage to established sole traders who start up a smaller, second trade.
The ATT has proposed an amendment to the Finance Bill provisions introducing the new £1,000 trading allowance from April 2017, with the aim of removing a disadvantage to established sole traders who start up a smaller, second trade.
As drafted in Sch 3 to the second Finance Bill 2017, the rules combine all of the income from an individual’s ‘relevant trades’. This means full relief will not be available if the combined income from both trades exceeds £1,000 and partial relief will not be attractive as the individual will be prevented from deducting the expenses incurred in their main trade.
The ATT’s suggested amendment would, broadly, exclude the receipts of a main trade from the definition of ‘relevant income’ and prevent possible abuse by requiring the qualifying micro-business to be wholly distinct and unrelated to the main trade.
The proposal is contained in the ATT’s written evidence submitted to the Finance Bill Committee at http://bit.ly/2y5sHRd.
