Residents near Wimbledon can earn extra income by renting rooms or selling items during the tournament. Any income generated must be reported and is potentially taxable, with HMRC able to impose costly penalties for non-compliance. Increased earnings attract greater scrutiny from HMRC, which has access to various databases for monitoring. However, residents may benefit from tax reliefs like the Property Income Allowance, Trading Allowance, and Rent-a-Room Relief to reduce or exempt certain incomes from tax liability.
Wimbledon is one of the most prominent sporting events of the year and attracts thousands of people. Residents in the area looking for extra income might let out spare rooms and driveways during the tournament, or sell strawberries and cream.
Any money generated from these activities, even on a short-term basis, may be subject to tax and must be reported to the Revenue. If not, HMRC has costly penalties and interest at their disposal for tax evaders.
Increased income brings increased scrutiny from HMRC. Through the freedom of information agreement, the Revenue have access to over 30 different databases which allow them to monitor short-term letting platforms, property listings and bank statements.
There are several tax reliefs that Wimbledon residents could claim, including Property Income Allowance, Trading Allowance, and Rent-a-Room Relief, which can help reduce taxable income.
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