Selling online?

HM Revenue & Customs (HMRC) are tracking your earnings.

Since January 2024, platforms like eBay, Vinted, and Amazon now report your income directly to HMRC.

Transparency is key – report your earnings to avoid penalties!

Engaged in a side hustle?

Side hustles, from selling t-shirts to driving an Uber, are activities for extra income beyond your main job.

The money you earn in your day-to-day job and your side hustle, when added together, could mean you need to pay extra taxes.

Three problems with side hustles:

  • Earning over £1,000 classifies you as self-employed, necessitating a Self-Assessment tax return.
  • Earnings below the personal tax allowance (£12,570 annually, £1,048 monthly) could surpass the threshold due to your side hustle, requiring Income Tax payment.
  • Combined income from your job and side hustle might push you into a higher tax bracket, increasing your Income Tax significantly.

As you can see, without adjusting your earnings strategy, you may face higher Income Tax.

Your next steps

If this applies to you, you need to do two things:

  1. File a tax return for your extra income with HMRC.
  2. Ensure your side hustle isn’t causing additional Income Tax obligations.

We get it, discovering this can be startling, but you’re not alone.

Immediate action is vital to avoid compliance issues and potentially extra taxes.

The best way to determine your side hustle’s tax impact is through a consultation with our experts.

As tax specialists familiar with side hustles, we’re confident in providing the help you need.