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.
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