Many people make a living from doing things in the gig economy like driving, delivering, or freelancing - often via online platforms such as Uber, Deliveroo and TaskRabbit. Some new HMRC rules are coming into force in January 2024. This news has caused people making money from the gig economy, either as a full-time job or as a ‘side hustle’, to ask questions about their tax position. In our article we explain the new rules from January 2024 and answer the most common questions. https://lnkd.in/eq87-fSZ #GigEconomy
The Low Incomes Tax Reform Group (LITRG)’s Post
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Straight talking gig economy tax FAQs on the January 2024 rules provided by our The Low Incomes Tax Reform Group (LITRG) team.
Many people make a living from doing things in the gig economy like driving, delivering, or freelancing - often via online platforms such as Uber, Deliveroo and TaskRabbit. Some new HMRC rules are coming into force in January 2024. This news has caused people making money from the gig economy, either as a full-time job or as a ‘side hustle’, to ask questions about their tax position. In our article we explain the new rules from January 2024 and answer the most common questions. https://lnkd.in/eq87-fSZ #GigEconomy
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Following on from our post last week on selling online and side hustles we have written a blog here explaining the new rules. What type of side hustles are involved? Popular marketplaces that need to report sellers’ financial details include: ➡️Uber Eats, Deliveroo and other food delivery apps working with delivery drivers. ➡️Etsy, eBay, Amazon and other online marketplaces where people sell new and used products. ➡️Uber and other apps providing taxi and private driver hire services. ➡️Airbnb and other online platforms promoting short-term property rental. ➡️Sites such as Upwork and Fiverr offering services provided by freelance workers. The new rules don’t affect you if you correctly report your income on your tax return. How you pay your taxes won’t change – you’ll still be expected to submit your tax return and pay your taxes as usual. The difference is that HMRC can now check this information with the numbers provided by the digital platforms. Therefore, the new changes only affect those who are: ➡️working via digital platforms in freelance and side hustle roles and are underreporting or not declaring their income to HMRC. These new rules come as part of wider regulations to combat tax avoidance, specifically for those earning additional income online. The first reporting deadline is 31 January 2025. Please do share with anyone who might benefit from this information and you can contact us or HMRC for further clarification. https://ow.ly/vtu550QqEWK #SideHustles #OnlineSelling #FreelanceWorkers #TaxReturn #IncomeDeclaration #TaxCompliance
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Following on from our post last week on selling online and side hustles we have written a blog here explaining the new rules. What type of side hustles are involved? Popular marketplaces that need to report sellers’ financial details include: ➡️Uber Eats, Deliveroo and other food delivery apps working with delivery drivers. ➡️Etsy, eBay, Amazon and other online marketplaces where people sell new and used products. ➡️Uber and other apps providing taxi and private driver hire services. ➡️Airbnb and other online platforms promoting short-term property rental. ➡️Sites such as Upwork and Fiverr offering services provided by freelance workers. The new rules don’t affect you if you correctly report your income on your tax return. How you pay your taxes won’t change – you’ll still be expected to submit your tax return and pay your taxes as usual. The difference is that HMRC can now check this information with the numbers provided by the digital platforms. Therefore, the new changes only affect those who are: ➡️working via digital platforms in freelance and side hustle roles and are underreporting or not declaring their income to HMRC. These new rules come as part of wider regulations to combat tax avoidance, specifically for those earning additional income online. The first reporting deadline is 31 January 2025. Please do share with anyone who might benefit from this information and you can contact us or HMRC for further clarification. https://ow.ly/peQo50QqEWJ #SideHustles #OnlineSelling #FreelanceWorkers #TaxReturn #IncomeDeclaration #TaxCompliance
New Side Hustle Reporting Rules | Spicer and Co Accountants, Dunstable
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Connecting the finest Accountancy and Practice staff to some of the leading firms and companies across Kent/London and the South East
Fancy a little side hustle? 🤠 Be careful that profits don’t exceed £1,000 p/a though! 😮 From the beginning of 2024 sees the start of new rules requiring websites such as eBay , Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. 👁 The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. 🏃♂️ In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register as self-employed and pay tax on these earnings, less the £1,000 trading allowance or actual costs if higher. 👌
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UK launches crackdown on side hustles The beginning of 2024 sees the start of new rules requiring websites such as eBay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register yourself as self-employed and pay tax on these
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🧐 Understanding the Crackdown 👉 The crackdown by HMRC focuses on identifying and taxing income from secondary sources, often referred to as side hustles. This includes: ✔ Freelance work ✔ E-commerce (selling on platforms like eBay, Etsy, or Amazon) ✔ Gig economy jobs (such as Uber, Deliveroo, or Airbnb hosting) ✔ Social media influencing and content creation ✔ Part-time consulting or contract work 💰 Once your side-hustle gross income goes above the £1,000 threshold, it can be subject to Income Tax, depending upon how much taxable income you earn from all other sources. 💳 If you’re already paying tax on earnings from such sources, the initiative will have no impact. #sidehustleincome #hmrc #taxchanges #incomestreams #taxinvestigation
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UK launches crackdown on side hustles The beginning of 2024 sees the start of new rules requiring websites such as eBay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register yourself as self-employed and pay tax on these
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UK launches crackdown on side hustles The beginning of 2024 sees the start of new rules requiring websites such as eBay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register yourself as self-employed and pay tax on these
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UK launches crackdown on side hustles The beginning of 2024 sees the start of new rules requiring websites such as eBay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register yourself as self-employed and pay tax on these
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UK launches crackdown on side hustles The beginning of 2024 sees the start of new rules requiring websites such as eBay, Vinted, Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy to record how much money people are making through them and report it to the tax office. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job - known as your Trading Allowance. If you make more than this, then you will need to register yourself as self-employed and pay tax on these
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