HMRC Alerts Online Influencers and Side Hustlers: Essential Tax Tips to Stay Compliant

HMRC Issues Warning for Online Influencers and Side Hustlers

Source: Birmingham Mail

New Tool for Tax Reporting

• HMRC has launched a new online tool aimed at helping individuals sell goods and services understand their tax reporting responsibilities.
• The initiative responds to new regulations that require digital platforms to report income data to HMRC about their users.
• These regulations come into effect in January 2024, with the first reports due by January 31, 2025.

Who Needs to Use the Tool?

• This tool benefits:
  • Individuals selling goods, services, or personal possessions online.
  • Those renting out properties or land.
  • Content creators earning through digital platforms.
  • Individuals receiving income from investments or property sales.

Importance of Proper Tax Reporting

• Tax rules regarding income and capital gains have not changed.
• There's widespread confusion about tax obligations concerning additional income from side hustles.
• Taxpayers are encouraged to file returns correctly to avoid potential penalties for unpaid taxes.

Potential Consequences for Non-compliance

• Unreported income from previous years could prompt HMRC to request additional disclosures.
• Late payments may incur interest at 7.25%, alongside possible penalties.
• Early declaration of past earnings is advised to prevent issues with HMRC.