Are you selling online? Do you know if you need to do a personal tax return?
Are you selling online? Do you know if you need to do a personal tax return?
The Low Income Tax Reform Group (LITRG) has allegedly warned HMRC that they need to increase publicity about new online platform reporting rules which will give HMRC access to a database of information about online sales.
New rules, as we have advised previously at Kennedys Accounting means that from January 2025 online platforms such as eBay, Vinted, Deliveroo and Etsy will have to share sales data with HMRC for the first time.
The LITRG have said that HMRC has not done enough to notify people that they may have to comply with this, dubbing it the ‘side-hustle time-bomb’.
HMRC will have the ability from January 2025 to catch up with many sellers of trinkets and homemade items who LITRG say may not consider they are trading or are unexperienced in having to deal with income tax and national insurance, which is estimated to affect up to two million sellers.
These new reporting rules ‘could cause chaos for taxpayers when the first reports are sent to HMRC and sellers in the New Year,’ said LITRG.
January is one of the busiest times of the year for HMRC, so customer service lines are already stretched thin at HMRC with phone line waiting times at a record high.
One of the LITRG technical officers is reported as saying: ‘There are just over three months to go until HMRC starts getting information about the income and activities of people who use online platforms to make money. We are concerned that we will see the same chaos and confusion that arose when the rules first came into effect.
If you believe that you are affected by this change, please get in touch with us here at Kennedys Accounting and we will be pleased to assist you.
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