HMRC tax warning for major platform-based companies

 

HMRC tax warning for anyone with side hustles on Airbnb, Uber, Deliveroo, Etsy.

HMRC is directing its attention toward the regulation of the Gig Economy in the United Kingdom, focusing on major platform-based companies such as Airbnb, Amazon, Deliveroo, eBay, Fiverr, Upwork, Uber, Uber Eats, and similar entities.

The United Kingdom’s tax authority (HMRC) has recently issued revised guidelines to tax regulations for individuals engaged in supplementary income activities and gig work. This update affects those offering products and services through prominent online platforms, including Airbnb, eBay, Fiverr, Upwork, Uber, Uber Eats, Deliveroo, Amazon, and Etsy. Under these new regulations, these platform providers will be responsible for documenting the earnings of individuals utilizing their services and subsequently sharing this financial information with HMRC.

HMRC’s primary objective is to facilitate the complete recovery of income while reducing the risk of tax evasion. In pursuit of this aim, HMRC has mandated the disclosure of information by gig economy platforms. These platforms are currently under a legal obligation to precisely document individuals’ earnings and subsequently share this data with HMRC. A substantial investment of £36.69 million has been earmarked by HMRC to bolster the enforcement of these measures.

Income Declaration

Any income earned from your side hustle must be declared to HMRC. This includes earnings from renting out property on Airbnb, providing services on Uber or Deliveroo, and selling goods on platforms like Etsy.

Tax Liability

Side hustle income is subject to taxation. Ensure that you understand your tax liability and fulfill your obligations to avoid penalties and legal consequences.

Record Keeping

Maintain accurate records of your side hustle transactions, expenses, and income. This documentation will be invaluable when filing your tax returns.

National Insurance Contributions (NICs)

Depending on the nature and level of your side hustle income, you may be required to pay National Insurance Contributions. Familiarize yourself with the applicable rules.

HMRC Registration

If your side hustle generates significant income, you may need to register as self-employed with HMRC. Failure to do so may result in penalties.

The tax year runs from April 6 to April 5. Ensure your tax affairs are in order before the relevant deadlines.

Compliance with tax regulations is essential to avoid legal consequences. Ignorance of tax obligations is not a valid excuse. For more information, visit the official HMRC website or contact their helpline.

We strongly advise you to review your side hustle activities and assess their tax implications. If you have any uncertainties or questions, consider seeking advice from a tax professional or contacting HMRC directly.