HMRC Go Public On Facebook So Beware And Be Warned!

HMRC go public on Facebook so beware and be warned if you have a side-line or side hustle!!

We all love a bargain on eBay or Vinted and purchasing through these online platforms is not a problem for HMRC but for those selling on these online marketplace HMRC are on the prowl.

They are employing many new staff and diverting many of their existing staff to catch those selling goods at a profit and some of these can be as small as 30 items posted on these sites or income exceedingly only £1700.

Letters are going out to people that they have identified selling on these sites.

The law exists for these online marketplaces to give information to HMRC direct, and this information is likely to be reliable.

HMRC always slant their articles on Facebook to make it sound as if they are helping you understand the rules for these particular side hustles. They are saying they want to take the hassle out of it for you, but really, they will be writing to you if you have been selling, sometime this year.

They are aware that from online selling to the delivery of these goods by vans, there are lots of ways to make extra cash outside of your main job. Or maybe it is your main job, but you have not yet got round to telling HMRC about it.

I know that most people we speak to, do not think of it as a business, they think of it as a hobby but there are lots of indicators that HMRC call ‘badges of trade’ that might count as trading and therefore if you are trading, you need to tell HMRC about these earnings.

You are of course allowed to claim expenses but if you are doing it regularly, you may be making a profit which is subject tax.

So speak to us if you think that a venture, that may well have started off as selling off your old clothes or household goods, has developed into something bigger or has generated a nice little earner for you on top of your normal employment.

A few hints might be:-

• Are you buying or making things to sell.
• Are you definitely earning money from something on the side like making deliveries or driving outside of your day job? If so, this is likely to be what they call a taxable side hustle.
• Do you work for yourself doing multiple assignments and this could be things like online tutoring for the 11+ or GCSEs, or walking people’s dogs or childminding.
• Are you a content creator on platform such as Only Fans as this sort of things can generate huge profits for the content creator.
• If you rent out property, this is clearly within the Tax domain and you need to declare it whether it is holiday rentals, letting out a second home or an investment property as a landlord so if you are in doubt call us and we will explain.

But if you have already started earning money from these things you need to declare it and time is running out. You must declare any income by the 5th of October following the end of the tax year (being the 5th of April in any year) and if you do not do so HMRC will be checking to see why.

Some people may have been selling on eBay for up to 20 years and if you have never declared it HMRC can go back and recoup the tax for up to 20 years.

So, the sooner you at least discuss it and see whether any profit has been made the better.

Call us and we will talk you through it.

If you believe you have something to declare you can do it on a voluntary basis and benefit from much reduced penalties and walk away with a clean sheet.

We’re here to help so call us on the numbers below.

Call Andy Rusling on 07879 464577 or Lindsay Henson on 07584 706664 for advice or fixed price for the work needed.