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Digital Entrepreneurs Could Save £400 on Tax

Every year thousands of people try their hand at a bit of digital entrepreneurship. It’s easy enough, all you need is a computer and internet connection.

Take eBay trading as a prime example, where all you to do is sign up for a free account on their site and you are good to get started selling your products for a profit.

This has led to the government introducing a new tax scheme that has been billed as the “eBay tax allowance” or a “tax break for the digital age.” The main idea behind it all is that online entrepreneurs on a low income could save up to £400 a year on tax.

We have the previous chancellor, George Osborne to thank for this one, as it was him that came up with the idea in March 2016. Well, now they are getting ready to implement the idea by putting it into action.

However, not everybody is convinced this is a such a good idea, with some experts arguing that while there are a few digital entrepreneurs on a low income that will benefit, the vast majority will pay more tax as a result.

Not only that, but they also argue that these new tax rules are so complicated that you would need to hire one of the best accountants in the country just to understand them.

This is why many people are expected to get things wrong when filling in their next tax return, which will then result in them either paying more tax or getting fined by HMRC for mistakes.

I thought the main goal was to make the subject of tax in the UK simple and straight forward? That seemed to be the way the government were heading a few years ago with the whole “making tax digital” and “quarterly tax return” plans, but when they were shelved it now appears they are back to making tax a complicated subject once again.

That is why I always advise anyone…it doesn’t matter if you are a digital entrepreneur or contractor…the best thing you can do is to hire an accountant and let them tell you the best way forward.

Even if you are a digital entrepreneur with a low income, hiring an accountant is really a smart move, because no matter how much you make…they will save you money.

Back to this new “tax break for the digital age” and I’m sure the government are going to run with it and see how it all plays out. Maybe it really will work and thousands of online entrepreneurs can save up to £400 a year.

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