Are you a Hustler! HMRC thinks you are, if you trade or sell on any online platform!

New HMRC rules in force from January 2024, pre-empt a massive crackdown on tax avoiders. Don’t let it mean a meltdown for you!

As of January 1, popular websites such as eBay, Vinted, Airbnb, Uber, Deliveroo and Etsy will have to record how much money people are making through them and report it to HMRC.

Platforms have been put in this position already in the past, by having to hand over users’ information to HMRC, e.g. with Only Fans and dog breeders using Petplan insurance, bringing in millions in tax.

HMRC have a right to obtain this information as these platforms take commission from those using them, which opens the door for HMRC’s tax grab. They will then use the data and compare it to the self-assessment returns submitted by individuals or easily check the names and addresses of those who have not declared it at all.

The tax office is investing around £37 million into the new tax-collecting venture, so you can see how much it expects to recover from the so called ‘side-hustlers’!

It is employing dedicated enforcement staff to do this work. Initially they are bound to target those with the higher turnovers, but watch out as it is a computer generated information gathering process, so they will have the capacity to send out thousands of letters in tranches throughout the year.

Don’t fight it alone, pick up the phone to Lindsay who can quote a fixed fee where possible to deal with this for you.

See the following blog to see whether the income you are earning falls to be taxed.