As of 2024, online platforms like eBay and Airbnb must report user earnings to HM Revenue and Customs (HMRC) if they exceed certain thresholds. Specifically, users who sell more than 30 items or earn over £1,700 annually will have their data shared with HMRC, which could lead to tax obligations for many side hustlers.
This change means that while casual sellers of personal items can still operate tax-free under certain conditions, those who engage in regular trading or earn significant income from side jobs must be vigilant. The distinction between selling personal possessions and trading for profit is crucial; if you frequently buy items to resell, you may be classified as a trader and subject to income tax on your earnings.
For many in the UK, this could mean unexpected tax bills if they do not keep accurate records of their earnings and expenses. With an average side hustle income of £5,640 per year reported, many individuals may find themselves exceeding the tax-free allowance without realising it, leading to potential financial strain.
Looking ahead, individuals should monitor their earnings closely and consider the implications of the upcoming changes to self-assessment in 2029, which will simplify reporting for those earning below £3,000. Staying informed and organised will be key to managing any tax liabilities effectively.
Sources
theguardian.com
