Online Income Tax - "Side Hussle Tax"
Online Income Tax - "Side Hussle Tax"
There are many websites and online platforms which allow individuals to generate additional income. The so called "side hussle" is now a real area of focus for HMRC.
Common websites and online marketplaces such as eBay, Etsy and Vinted allow individuals to sell a range of goods, such as clothing, shoes and books. There are also a number of different online platforms, such as Airbnb (whereby individuals can rent their property short term) and OnlyFans (where individuals can sell content through subscriptions).
If you have generated an income of over £1000 or sell over 30 items per year online, you may have a tax liability to declare to HMRC. The key questions come down to whether the activity is considered to be a trade, i.e. buying and selling items to generate a profit, rather than selling unwanted used items.
Starting from January 1st 2024 online platforms, such as eBay, Etsy and Vinted (along with others noted below) will automatically share sellers' data with HMRC. This in turn will allow HMRC to target individuals who have not declared this income and may therefore have an unpaid tax liability.
Online Income Tax Advice - call us on 0113 387 5670
If you use such platforms as a way of generating additional income, you should seek to clarify your position. We offer a free initial phone consultation.
Our team of experienced tax advisers can assist individuals who may have undeclared income tax liabilities from online sales, from online marketplaces and websites such as:
- eBay
- Etsy
- Vinted
- Depop
- Uber
- Airbnb
- Booking.com
- JustPark
- OnlyFans
Whether an individual is already employed and supplements their income through such online marketplaces, or trades full time, for many it will mean there is an obligation to bring tax affairs up to date with HMRC.
Declare Unpaid Tax - Call for Advice 0113 387 5670
Our experienced team of tax advisors assist individuals in bringing their tax affairs up to date with HMRC through voluntary disclosures, or if a HMRC ‘Nudge Letter’ has been received.
To discretely discuss your circumstances with a member of our team call us on 0113 387 5670 or fill out an
Enquiry Form and we will contact you straight away.
If you do not pay your tax there are a number of actions HMRC may take in order to recover unpaid tax debt. Depending on the circumstances this could take the form of either a tax investigation or HMRC debt enforcement action.
“I’m late filling in my tax return” is a statement that we see time and time again in the enquiries that we see coming through from tax payers who have issues and are contacting us for assistance.
Let Property Campaign - Rental Tax Disclosure Case Study.We assist individuals in making disclosures of unpaid tax to HMRC and in investigations by HMRC. Call us on 0113 387 5670
Contact us today to find out how we can assist you...
To hear more about our Tax Investigation Services or to discuss a potential case with a member of our team, call us on 0113 387 5670.
Alternatively, you can email us at enquiries@forthsonline.co.uk
or fill out an Enquiry Form
and we will contact you directly.