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Gloucestershire Business News

‘Side hustle’ apps to share info with HMRC

People who make extra cash from online activities will be subject to more HMRC scrutiny from this year.

Firms including Airbnb, Vinted and eBay are now obliged to collect and share details of online sales with HMRC, as reported by the BBC.

The new rules, which came into force on January 1, will allow the organisation to track down anyone who should be declaring income from an online side hustle.

HMRC was already able to request the information from UK-based online operators, but is now part of new international rules through the Organisation for Economic Cooperation and Development (OECD), as part of a worldwide effort to clamp down on tax dodgers.

Under the new rules, digital platforms will routinely report how much money sellers are making through their site.

The rules apply to sales of goods, as well as services such as food delivery, short-term accommodation lets, taxi hire and even renting out driveways for parking.

Information collected will be shared between all countries which have signed up to the OECD tax rules.

The HMRC said the new rules will help online sellers get their tax right first time, as well as helping it track down any deliberate tax evasion.

Under the new rules:

• Online sellers already paying tax do not need to change what they are doing

• There is a £1,000 tax-free allowance for money made through property

• There is a £1,000 tax-free allowance for trading income, whether selling second-hand clothing or offering services like gardening

• People earning below those thresholds should keep records in case they are asking for them, even though they may not have to fill in a tax return

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