HMRC warns millions of people in the UK about 'crackdown' beginning next year

dailyrecord.co.uk:

HMRC has warned millions of Brits of a "crackdown" set to begin on January 1 next year.From the very beginning of 2024, anyone in the UK who makes money selling goods or services online will have their incomes recorded on digital platform that they use, as per a request from HMRC.

This update will affect anyone with a Airbnb, Fiverr, Upwork, Uber, Deliveroo or Etsy online business. The change is part of a wider plan for HMRC to keep a more accurate eye on people trying to boost their income through side hustles or freelancing.Birmingham Live reports that HMRC wants to make it easier to spot anomalies in information provided by a digital platform and the person, giving the tax office grounds to launch an investigation. £36.69m will be invested in the scheme with 24 full-time staff members hired to enforce it.

Seb Maley, CEO of tax insurance provider for self-employed workers, Qdos, said: “This legislation has flown under the radar, but will have big implications for anyone renting their place out on Airbnb, freelancing on Upwork or Fiverr, or driving for Uber – whether that’s as a side hustle or full-time job. “The crux of it is that HMRC doesn’t trust the growing number of people with side hustles in the UK to accurately report how much money they’re making this way – so the tax office will go directly to these platforms, who will become responsible for recording this information and handing it over to HMRC.“HMRC will then compare it with the tax returns submitted by these people.

If the numbers don’t add up, HMRC has everything it needs to launch a tax investigation. Needless to say, it’s vital that people earning money this way make sure of their tax compliance.“The Minimum Trading Allowance is £1000 a year.