In recent years, side hustle have become increasingly popular in the UK, offering individuals a way to supplement their income. However, with this rise comes a new set of tax regulations that hustlers need to be aware of…
What Does the New Side Hustle Tax Mean for You?
HMRC is tightening its grip on side hustle income. From January 2024, digital platforms facilitating side hustles, such as Airbnb, Etsy, and Uber, will be required to share user details with HMRC. This move is part of a broader effort to ensure tax compliance and crack down on evasion.
Are You Liable to Pay Tax on Your Side Hustle?
If your earnings from side hustles exceed £1,000 in a tax year, you are required to declare this income to HMRC.
How to Declare Your Side Hustle Income
Declaring your income is straightforward but essential. You must register for Self-Assessment with HMRC and accurately report your earnings. This process ensures that you pay the correct amount of tax and avoid potential penalties. Keeping accurate records of your income and expenses from your side hustle will make the process of declaring your income much smoother.
Potential Implications of Not Complying
Non-compliance with these new regulations can lead to significant consequences. HMRC is investing resources to identify discrepancies in income reporting. Failing to accurately report your side hustle earnings could result in investigations and fines.
Reach out today!
The new tax regulations mark a significant shift in how the UK handles income from secondary sources. If you’re unsure about how these changes affect you, seeking professional advice can be a wise decision.
For expert guidance on navigating these new tax waters, consider reaching out to one of our tax professionals. We can provide personalised advice and help ensure that you’re meeting all your tax obligations, reach out today!