Limit Self Assessment and Record Keeping for Hobbyist and Micro Businesses
Micro Businesses eg crafters and hobbyists for example should not need to keep records of sales and expenses or register for self assessment,unless they are also claiming benefits (whether disability,incapacity,housing benefit,tax credits,pension credits,job seekers allowance etc) or unless they are also working for an employer. If it is their only source of earnings, they should not need to disclose until their turnover reaches £10,000 per annum.All they should need to do is tell the |Inland revenue of their start up and sign an online disclosure form each year that there turnover has not reached , or is not expected to reach £10,000 in that tax year.Once this turnover figure is reached in any given tax year they should then begin keeping records ,but discounting the first £10,000 of turnover and related expenses up to the date the limit is reached. Although once the £10,000 turnover is reached capital allowances/gains would still be claimed/disclosed for the whole of the tax year in question. As an over 50 small online crafter/embroiderer,whereby this is my only earnings position,and who's ethic is self reliance , who does not ever rely on the benefit system,and who has set up solely to try to bring in a small supplementary income,( although my actual working day from home is virtually 24/7, so much less than minimum wage) my record keeping is both extensive and much too time consuming .In my opinion all this added paperwork and red tape is uneccessary as my profits are very low and I would expect to always be well under the Lel for both income tax and national insurance.
Why does this idea matter?
To encourage more ordinary people to use there Skills and become Self reliant and to take away some of the Burdens and Red Tape experienced by people beginning to take their first steps into self employment.