Online sellers are being reminded to keep on top of their tax affairs following the new ‘side hustle tax’ rules that came into play at the start of the year.
On the 1st of January 2024, new rules meant that online platforms, such as eBay, Vinted, Uber and Deliveroo, must start collecting and sending information to HMRC and the individual by the 31st of January 2025.
Those who are selling reused items online without the intention of making a regular profit won’t be affected by these new rules, however, if they were buying items in order to resell for a profit, or making their own products to sell, then this is likely to count as trading.
Our page, Do I need to worry about the new ‘side hustle rules? will tell you everything you need to know about this.
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HMRC has warned those selling goods or services online that some digital platform operators will soon start sharing their details, which will ultimately help HMRC to identify those who haven’t been paying tax when they should have been.
Senga Prior, Chair of the ATT Technical Steering Group, explained, “It’s important to remember that the tax rules for individuals selling goods or services online have not changed. These new rules just mean HMRC will have more information about what taxpayers are doing.
“If you think you might have tax to pay you shouldn’t wait for HMRC to get in touch. If you do, you could face interest and penalties on top of the tax bill.”
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