WEBVTT 00:00:00.300 --> 00:00:03.020 So HMRC has announced that they'll no longer 00:00:03.020 --> 00:00:06.219 require thousands of pensioners with side hustles 00:00:06.219 --> 00:00:10.080 to file a tax return as part of new proposals 00:00:10.080 --> 00:00:13.660 revealed this week. So by the end of 2029, the 00:00:13.660 --> 00:00:17.059 tax office plans to increase trading income reports 00:00:17.059 --> 00:00:20.500 and thresholds up from 1 ,000 pounds to 3 ,000 00:00:20.500 --> 00:00:24.000 pounds. Now pensioners are increasingly likely 00:00:24.000 --> 00:00:27.089 to have some kind of a side hustle and that might 00:00:27.089 --> 00:00:29.809 be making some arts and crafts to sell at the 00:00:29.809 --> 00:00:33.210 local market or maybe buying and selling some 00:00:33.210 --> 00:00:36.229 collectibles on eBay or Vinted or even running 00:00:36.229 --> 00:00:40.869 a paid YouTube channel, guilty. Now under current 00:00:40.869 --> 00:00:43.750 regulations anyone earning below a thousand pounds 00:00:43.750 --> 00:00:47.509 from a side hustle within any tax year is actually 00:00:47.509 --> 00:00:51.149 exempt from paying any tax or even need to declare 00:00:51.149 --> 00:00:54.719 the income and this is due to a thousand pound 00:00:54.719 --> 00:00:57.939 trading allowance. So no need to declare, no 00:00:57.939 --> 00:01:00.399 need to pay any tax on it. But that's only about 00:01:00.399 --> 00:01:03.079 20 pound a week and typically pensioners with 00:01:03.079 --> 00:01:06.079 this kind of side hustle are more likely to make 00:01:06.079 --> 00:01:09.719 around 50 pound per week. Now that's 2 ,600 pound 00:01:09.719 --> 00:01:13.180 per year and then you would be required to fill 00:01:13.180 --> 00:01:16.920 in a tax return and that can be quite onerous. 00:01:17.359 --> 00:01:20.859 So with the new rules, individuals won't need 00:01:20.859 --> 00:01:23.620 to report income until it goes over £3 ,000, 00:01:24.060 --> 00:01:26.980 though they'll still need to pay the taxes they 00:01:26.980 --> 00:01:31.719 owe above £1 ,000. But rather than filling in 00:01:31.719 --> 00:01:34.799 on one of them horrible tax returns in January, 00:01:35.260 --> 00:01:38.359 with these lower incomes, they'll be able to 00:01:38.359 --> 00:01:41.120 log on through what they describe as a straightforward 00:01:41.120 --> 00:01:45.540 tax bill or possibly pay via their tax code online. 00:01:46.640 --> 00:01:49.900 James Murray. is the exchequer secretary to the 00:01:49.900 --> 00:01:53.359 treasury. And he said that the change is there 00:01:53.359 --> 00:01:56.480 to facilitate entrepreneurial activities. But 00:01:56.480 --> 00:02:00.040 his actual quote was, so from trading old games 00:02:00.040 --> 00:02:03.400 to creating content on social media, we're transforming 00:02:03.400 --> 00:02:07.019 HMRC to help Britain maximise their entrepreneurial 00:02:07.019 --> 00:02:10.560 ventures. This adjustment means fewer texture 00:02:10.560 --> 00:02:14.340 submissions and more of a focus on growing side 00:02:14.340 --> 00:02:20.229 hustles. Now, HMLC estimate up to 300 ,000 individuals 00:02:20.229 --> 00:02:23.969 including those selling on items on platforms 00:02:23.969 --> 00:02:27.830 like vintage or eBay will no longer need to file 00:02:27.830 --> 00:02:31.770 a self -assessment tax return. Approximately 00:02:31.770 --> 00:02:35.610 one third of these won't owe any taxes at all 00:02:35.610 --> 00:02:38.270 because they're below the thousand and the other 00:02:38.270 --> 00:02:42.090 two thirds can pay their tax using this new simple 00:02:42.090 --> 00:02:45.610 online service I referred to. Now I think that 00:02:45.610 --> 00:02:48.770 More could be done to lessen the admin burden 00:02:48.770 --> 00:02:51.490 on taxpayers. And while there is some relief 00:02:51.490 --> 00:02:53.789 for those with a side hustle, they'll still be 00:02:53.789 --> 00:02:56.629 responsible for declaring and paying these taxes. 00:02:58.569 --> 00:03:02.009 Now they could, I think, have gone a bit further 00:03:02.009 --> 00:03:06.110 and actually exempted more taxpayers from self 00:03:06.110 --> 00:03:08.930 -assessments. And if they just raised the limit 00:03:08.930 --> 00:03:12.530 from 1 ,000 pounds to 3 ,000 pounds, they could 00:03:12.530 --> 00:03:16.629 have created many more grey entrepreneurs. Now, 00:03:16.650 --> 00:03:20.050 HMRC has actively been targeting individuals 00:03:20.050 --> 00:03:23.300 who sell goods online. and they've been sending 00:03:23.300 --> 00:03:26.259 reminder letters out to those they suspect of 00:03:26.259 --> 00:03:29.539 underreporting this type of income. And this 00:03:29.539 --> 00:03:32.080 follows new regulations implemented this January 00:03:32.080 --> 00:03:35.919 that mandated platforms to automatically report 00:03:35.919 --> 00:03:39.199 user information related to set these kind of 00:03:39.199 --> 00:03:42.219 sales to HMRC. And this allows the tax office 00:03:42.219 --> 00:03:45.280 to identify earners who were having this kind 00:03:45.280 --> 00:03:47.960 of income. Now, many pensioners are actually 00:03:47.960 --> 00:03:51.319 unaware that the likes of eBay and Vint are sending 00:03:51.319 --> 00:03:55.659 their information directly to the taxman. HMRC 00:03:55.659 --> 00:03:58.639 actually plans to introduce a program aimed at 00:03:58.639 --> 00:04:02.099 encouraging informants to report tax evaders, 00:04:02.400 --> 00:04:04.479 and they're offering some substantial awards, 00:04:04.919 --> 00:04:08.159 which did try to align, I think, more with what 00:04:08.159 --> 00:04:11.479 they're doing in America with the IRS. And experts 00:04:11.479 --> 00:04:13.900 have actually been saying that... What they've 00:04:13.900 --> 00:04:16.220 learned from looking at what the IRS do shows 00:04:16.220 --> 00:04:19.980 that you can really get significant tax recoveries 00:04:19.980 --> 00:04:24.439 if you use an informant -based rewards. They're 00:04:24.439 --> 00:04:26.279 actually quite critical of what the HMRC have 00:04:26.279 --> 00:04:29.889 been doing. in terms of inadequate procedures 00:04:29.889 --> 00:04:32.529 for whistleblowers. And they highlight the importance 00:04:32.529 --> 00:04:36.170 of giving some pretty serious incentives to encourage 00:04:36.170 --> 00:04:38.769 reporting of that more serious tax fraud because 00:04:38.769 --> 00:04:42.110 actually can be quite dangerous for the informants, 00:04:42.189 --> 00:04:45.930 particularly where the tax evasions around organized 00:04:45.930 --> 00:04:49.389 crime. So for me, it's good news that we can 00:04:49.389 --> 00:04:53.660 now earn up to three grand outside hustle. up 00:04:53.660 --> 00:04:55.439 to three grand on the side also without having 00:04:55.439 --> 00:04:57.920 to do a tax return, but it could have been better. 00:04:58.220 --> 00:05:00.459 They could have just raised the threshold from 00:05:00.459 --> 00:05:03.300 1 ,000 to 3 ,000. But anyway, we've got some 00:05:03.300 --> 00:05:05.959 big news coming tomorrow from Tracy and I, so 00:05:05.959 --> 00:05:10.339 don't forget to tune in. It will be quite big 00:05:10.339 --> 00:05:12.740 news for us anyway. So I'll see you on the next 00:05:12.740 --> 00:05:13.740 one. Thanks for listening.