As the New Year unfolds, HMRC is tightening its scrutiny on online sales earnings, potentially affecting almost one in six British workers with higher tax obligations. This initiative is part of a broader international effort led by the Organisation for Economic Cooperation and Development (OECD) to combat tax evasion. Major digital platforms like Vinted, Airbnb, and eBay are now mandated to collect and disclose transaction details to tax authorities.
Starting this year, these platforms are required to report the income that sellers generate from their sales, particularly from goods such as second-hand clothes or handmade items. Sellers earning over £1,000 annually from these activities must register as self-employed and submit a self-assessment tax return at the financial year’s end.
MoneyZine reports that with one in six British workers involved in the gig economy, the impact of these changes could be significant. Millions of individuals and small businesses surpassing the £1,000 threshold could face hefty penalties if they fail to declare their earnings accurately to HMRC.
Alex Till, Chair of the National Enterprise Network, highlighted the importance of seeking professional tax advice: “Research shows that working with a professional enterprise adviser leads to better outcomes for startup and micro businesses. Not only does it help entrepreneurs avoid costly mistakes and remain compliant, but the right advice ensures their business ideas can continue to thrive, increase sales, and grow profitability.”
The National Enterprise Network is advocating for businesses to utilize its services, offering access to a wide range of enterprise support organisations. These entities provide independent and impartial advice, training, and mentoring, essential for navigating new tax regulations and fostering business growth.
This revised version aims to clearly present the new tax rules and their potential effects, emphasizing the importance of professional advice for compliance and business success.
