Discover the latest developments as HM Revenue and Customs (HMRC) tightens its grip on online sellers. Unveiling the ‘side hustle tax,’ HMRC mandates popular resale platforms like eBay, Vinted, Depop, Etsy, and others to disclose individual seller earnings.
Implemented on January 1, this game-changing regulation targets sellers earning over £1,000 annually through online transactions. The reach spans various categories, including second-hand clothing and furnishings.
Stay informed about the HMRC’s mission to combat tax evasion, leveraging these rules to create an equitable landscape for all taxpayers. While platforms possess data-sharing capabilities for UK-based sellers, the new rules facilitate cross-border information exchange with tax authorities worldwide.
Addressing concerns within the business community, platforms are exempt from sharing data for sellers with fewer than 30 transactions (equivalent to £1,740 annually). Key exemptions protect low-level sellers, including those selling items below purchase price or handling gift transactions.
Navigate the evolving landscape of online selling with confidence. The HMRC spokesperson affirms, «These rules empower online sellers to get their tax right from the start, ensuring a level playing field and detecting non-compliance.»
Unlock the insights sellers need in this era of tax transparency. Stay ahead, stay compliant.
