HMRC must publicise these tax reliefs more widely to ensure that people know when and how to claim them
Clarity and guidance are needed on the new property and trading income allowances, according to the Low Incomes Tax Reform Group (LITRG).
A £1,000 allowance for property income and a £1,000 allowance for trading income are available for 2017/18.
Individuals who have income below the allowance will be able to deduct £1,000 instead of claiming the actual allowable expenses.
The tax group recommends the following guidance:
who can use the allowances
when business records need to be kept
when to inform HMRC about trading business and property income.