From 1st Jan 2024, HRMC will be able to access and view your incomes on digital platforms like Airbnb, Etsy, Upwork, Uber etc.
If any of you have a side hustle that you haven’t yet got around to declaring on your self-assessment Tax Return, then now is a good time.
HMRC’s new powers mean that any UK residents who make money selling on digital platforms will have their incomes recorded and HMRC will have direct access to this.
These digital platforms include websites which facilitate the provision of goods and services such as the provision of food delivery services, freelance work, selling of small craft objects, taxi and private hire services and the letting of short-term accommodation.
HMRC will have access to the digital records of businesses such as:
- Airbnb
- Fiverr
- Upwork
- Uber
- Deliveroo
- Etsy and other online businesses.
The change was introduced in section 349 of the Finance (No.2) Act 2023 and is part of a wider plan for HMRC to keep a more accurate eye on people adding to their existing income through side profits or freelancing. They will be checking tax returns to ensure the figures tally with the records from the platforms themselves.
From 1 January 2025, certain UK digital platforms will be required to report information to HMRC about the income of sellers of goods and services on their platform. HMRC will then exchange the information with the other participating tax authorities for the jurisdictions where the sellers are tax residents.
You will only be affected by this if you earn more than £1,000 a year on your side hustle. Anyone earning less than this does not have to declare this on their tax return. Anyone earning more than £1,000 must register for self-assessment and complete a tax return each year.
