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Discussion Starter · #1 ·
Personal allowance
The tax-free personal allowance will increase from £10,600 this year to £11,000 in 2016-17. The Government plans to increase this to £12,500 by 2020. Once it reaches this level, people working 30 hours a week on the national minimum wage won't pay income tax at all. The amount people earn before they pay tax at 40pc will increase from £42,385 in 2015-16 to £43,000 in 2016-17

Can someone explain that to me, does it mean that uber drivers for instance wont have to pay tax because they more or less earn minimum wage ?

Also the thing about 10.600 grand, does that mean anyone earning less than that a year does not have to pay tax now ?
 

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Yes to both.

If an Uber drivers profit after all deductions is less than Personal Allowance (PA) they wont pay any tax. And yes anyone earning less than PA dont pay tax.

Important to note that everyone is entitled to the PA. Including the people earning £150k+.

All this means is that the first £10,600 of your earnings is tax free. Anything beyond that you start paying tax.
 

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Discussion Starter · #3 · (Edited)
Why do i hear people moaning about making a couple of grand from something and having to pay tax on it ? like ebay or something


also i thought i read somewhere that making anything over £ 2500 has to be declared to the tax office. so what does that mean in relation to the £10,600
 

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Uber drivers are liable for tax based on their net earnings, the same as anyone else.
The minimum wage is irrelevant, as we're all self-employed (or working S/E on top of something else).

I suggest you find better sources of information (a good accountant, perhaps); Everything "has" to be declared to the tax office - whether it's a £1 profit, a £2500 profit, or a £1m profit. And HMRC do monitor the more active eBay seller accounts...
 

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It would do them no good if they did - all the major revenue (VAT) from these big corporations is going straight to the likes of the NL, Luxembourg, etc.
I'm so glad we're in the EU...
 
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