Boost sharing economy with tax cuts, says IoD
26th November 2014
Individuals should be able to earn up to £10,000 a year tax-free by sharing their time or resources, the Institute of Directors (IoD) has said.
The IoD has recommended that the government should extend the principle of the Rent a Room Scheme to other areas of the economy such as car sharing or hiring assets.
Currently people can earn up to £4,250 per year without paying income tax by renting out a room in their home.
The IoD surveyed more than 1,200 of their members about their attitudes towards sharing services with people they don't know:
- 45% of people said they weren't comfortable with sharing resources with strangers
- 35% said they would be comfortable
- 85% said they would need insurance before using shared resources.
Jimmy McLoughlin, deputy head of policy at the IoD, said:
"The government has made clear its desire to establish the UK as a global leader in the sharing economy, and we welcome this commitment. At its simplest, the sharing economy is about letting people make the most of their assets and the government should establish a tax regime that encourages and supports this.
"The original Rent a Room allowance was brought in as recognition that thousands of people had the means and opportunity to supplement their income in this way, and our proposals represent a modernisation of that same understanding."
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