Starting from January 1st 2024, HMRS now require selling and service platforms to regularly report your transactions to them. These records will be cross-checked with the income you’ve reported on your tax return, and any disparities may be subject to investigation.
This measure aims to combat tax evasion.
However, there’s no need to panic. Remember, you’re entitled to a £1,000 tax-free allowance for property income and another £1,000 tax-free allowance for trading income. This means that small side hustles may fall within these exemptions.
Some of the marketplaces affected by this change include Ebay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo, Etsy, cat, and dog sitting.
Here’s what our Tax Manager, Amy, suggests:
If you’re already paying taxes on all your online earnings, continue as usual. Keep thorough records, even if your income falls below the threshold, as they may be necessary in case of a compliance check from HMRC.
If you’re not sure about the above, talk to an independent specialist such as an accountant.
Check out our FAQ’s page for more useful information on tax and your responsibilities as a sole trader or a limited company.
HB Accountants are there for all businesses. Feel free to contact us. We’re here to discuss how we can support you with your affairs.
The information contained above is for general guidance purposes only. Whilst every effort has been made to ensure the contents are accurate, please note that each individual has different circumstances and it is essential that you seek appropriate professional advice before you act on any of the information contained herein. HB Accountants can accept no liability for any error.
Read Our Latest Blogs Below
- Get ahead for the new year – 8 accountancy tasks to tackle now
While it is incredibly tempting to wind down in the days leading up to Christmas and take it easy between Christmas and the New Year celebrations, it really is the perfect time to ensure that your accounts are in tip top shape. - Take the Stress Out of Your Self-Assessment Tax Return
As the self-assessment tax return deadline looms, freelancers, sole traders, and ‘solopreneurs’ across the UK are bracing themselves for what can feel like one of the most daunting tasks of the year. If you’re already feeling the pressure, you’re certainly not alone. - HMRC Advisory Fuel Rates (AFRs) from 1st December 2024
Advisory fuel rates (AFRs) are recommended reimbursement figures for drivers reclaiming business mileage, usually for those in company vehicles. The advisory fuel rate is updated by HMRC based on fuel prices every quarter, and publish revised figures if required in late February, May, August … Continue reading - Accounting for Christmas
As we leap towards the start of the festive season, with Christmas only a few weeks away (sorry!), we are sure that marketing and people teams are full speed ahead with planning Christmas parties and finding ways to to thank everyone for their hard … Continue reading - Solving a Finance Director’s Worst Nightmares: Strategies to mitigate or prevent them from occurring
Finance professionals are not only responsible for financial transactions and reporting, they are directly involved in the operation of their organisations; providing strategic direction and high-level decision making. However, with this expanded responsibility and new technology, there comes new challenges. - How to create a financial forecast
A financial forecast is an important tool to help you understand the steps you need to take to grow your business or remain profitable. In business, many factors are beyond your control but it’s invaluable to know what to expect in the near future … Continue reading
