24.01.2024

Online Sellers: HMRC Announcament!

Accountant, Bookkeeper, Payroll Consultant, Tax Adviser

New HMRC Rules for Online Sellers

HMRC has introduced new rules that affect anyone who sells items on sites such as eBay, Vinted, Etsy, or Depop or people who rent out their homes on Airbnb and other similar sites.

If you're a delivery driver for the likes of Deliveroo or Uber Eats, for example, or you sell your freelance services through a website and earn money from doing so, you'll also come under the new regulations.

Here in the UK, the tax authorities will use the data they receive due to these new rules and cross-reference it with other records it holds about you and your business to ensure that you're reporting your income accurately.

The legislation in the UK will apply to any digital platform that is resident for tax purposes in the UK.

Such platforms will be required to report specific data concerning the sellers using that platform, regardless of whether those sellers are UK taxpayers or not.

The new digital platform reporting rules:

Essentially, HMRC will have more data available to ensure that any UK taxpayer (not just those running a side hustle) with an income from a digital platform is declaring the correct amount of income.
But they won't have to begin reporting this information to the authorities until 31 January 2025, to cover 2024 calender year.
The data that's collected by digital platforms can be used by HMRC to check what you've submitted via Self Assessment.
The changes don't affect what is known as the trading allowance. Also called the trading and miscellaneous income allowance and currently set as £1,000 per tax year, this is the amount you can earn from trading or from casual and miscellaneous activities before you have to pay income tax and National Insurance.
Individuals also enjoy a £1,000 tax-free allowance for money made through property.

What do you think of the recent update and how will this affect you?
GET IN TOUCH!
ilkan@protaxplus.co.uk
Whatsapp: 01279 972 718
www.protaxplusbishopsstortford.co.uk
For free/no obligation meeting: https://ilkan.youcanbook.me/

Self Assessment Tax Returns
Bookkeeping
Accounting
tax advice

Ilkan Teker

Pro Tax Plus Accountants

Accountant, Bookkeeper, Payroll Consultant, Tax Adviser

At Pro Tax Plus Accountants, our goal is to provide tailored solutions that align with your objectives, and we are committed to delivering exceptional service through our partnership.