Government plans to raise tax return threshold

Government plans to raise tax return threshold from £1000 to £3000

The government is proposing an increase in the self-assessment tax return threshold, potentially impacting foster carers who are classified as self-employed.

As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.'

Currently, foster carers must complete a self-assessment tax return if their 'business activity' exceeds £1,000. Under the new proposal, you would only need to file a tax return if your 'fostering profit' exceeds £3,000.

This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth. Those who will need to pay any tax they owe, will be able to pay their tax through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.

Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales in a speech to mark the 20th anniversary of HMRC.

This change could simplify the tax process for many foster carers by reducing administrative work.

If you would like more information please visit the below link.

https://www.gov.uk/government/news/boost-for-side-hustlers-as-300000-people-to-be-taken-out-of-tax-returns-government-announces