Would you be surprised to know that on average, Brits earn an extra £10,701 per year from side hustles and that 44% of Brits have a side hustle? It is suddenly no wonder that this news has created a lot of buzz over the past weeks.
According to the HMRC guidelines published on 05.01.2023, if you regularly sell goods or services through an online marketplace you could be classed as a ‘trader’, and if you earn more than £1,000 before deducting expenses through your trading, you will need to pay Income Tax.
The threshold for earnings from online "side hustles" is set at more than £1,000 a year – above this, online sellers must register as self-employed and file a self-assessment tax return at the end of the financial year.
From January companies including Vinted, Airbnb, Depop and eBay are obliged to collect and share details of transactions with the tax authorities.
Under the new rules, digital platforms will routinely report the income sellers are getting through their website and will apply to sales of goods, such as second-hand clothes or handmade items, but also services including taxi hire, food delivery and short-term accommodation lets.
Further details can be found HERE and if you have any questions, please let us know. We are here to help.
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The information provided in this article is not intended to constitute professional advice and you should take full and comprehensive legal, accountancy or financial advice as appropriate on your individual circumstances by a fully qualified Solicitor, Accountant or Financial Advisor/Mortgage Broker before you embark on any course of action.