CHANCELLOR MUST SUPPORT UK’S VIBRANT SHARING ECONOMY - SHARING ECONOMY UK BUDGET SUBMISSION
The UK’s £8 billion sharing economy continues to grow rapidly using technology to empower people, better utilise resources and reduce waste. The significant contribution by these innovative companies should be accelerated in the forthcoming Budget, according to Sharing Economy UK (SEUK).
In a letter to the Chancellor, the sector’s leading trade body confirms that a quarter of adults are using the sharing economy and 11% of the working age population (5.3 million individuals) already participate as providers in accommodation, food-related or transport services.
With the sharing economy worth a potential £140 billion by 2025, the Budget is a fantastic opportunity to cement the UK’s position as a global leader for this sector.
SEUK Budget recommendations to the Chancellor include:
- Simplifying the tax system to encourage further participation in the sharing economy, by increasing the tax allowance for people taking part from £1,000 to £3,000.
- Finding a long-term multinational solution to modernise the international tax framework for digital businesses.
- Providing a short online information pack from HMRC with specific guidance for online platform users to help them meet their tax obligations.
- Enabling accommodation hosts to continue benefitting from uncomplicated tax-free earnings, including Rent a Room relief.
- Incentivising shared mobility, the transition to electric vehicles and charging infrastructure by working with local authorities to make better use of limited urban space.
- Outlining how smaller and start-up digital businesses can better access programmes through the apprenticeship levy.
Richard Laughton, Sharing Economy UK Chair and CEO of EasyCar, said:
“The sharing economy brings considerable value to the UK and provides a platform for people to bring their innovative ideas to life.
“For the UK to continue to succeed in this sector, we must harness this growth. The current tax allowances for trading and sharing skills have enabled millions to participate and the Budget should increase these allowances.
“It would also be helpful for HMRC to give clearer advice on how providers can meet their tax requirements. Doing so will encourage more people to participate and help cement the UK’s reputation as a thriving tech hub.”
For more details about each of the recommendations, a copy of Sharing Economy UK’s letter to the Chancellor can be found here