Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Millions of gig workers and people with side hustles braced for tax crackdown

by October 12, 2023
October 12, 2023
Millions of gig workers and people with side hustles braced for tax crackdown

Rent out your home on Airbnb? Drive for Uber? Freelance on Fiverr? From January, these platforms will record your income and soon report it to HMRC…

The growing number of gig workers, people with side hustles and those earning money from the likes of Airbnb, Upwork, Uber, Deliveroo and Etsy have been urged to ensure their tax compliance – given from 1st January 2024, HMRC has instructed these digital platforms to record how much money people make by selling their services on them.

It’s part of a wider tax crackdown from HMRC on people boosting their income via side hustles, freelancing and self-employment, which will see the rapidly growing number of gig platforms responsible for recording and, in time, reporting sellers’ earnings to the tax office.

Individuals themselves will be expected to continue submitting and paying tax on their self-employed income every year to HMRC as part of the self-assessment tax return.

The reason behind the introduction of the ‘Model Reporting Rules for Digital Platforms’ is so HMRC can spot discrepancies between information provided by a digital platform and the individual, giving the tax office grounds to launch an investigation.

These rules will come into effect on New Years Day, with digital platforms to start recording sellers’ income from then before reporting it to HMRC a year later. HMRC will invest £36.69m in this initiative and employ 24 full-time staff to launch and enforce these measures, which aim to “bear down on”, “detect and tackle tax evasion”.

Commenting on the rapidly approaching roll-out, Seb Maley, CEO of tax insurance provider for self-employed workers, Qdos, said: “This legislation has flown under the radar, but will have big implications for anyone renting their place out on Airbnb, freelancing on Upwork or Fiverr, or driving for Uber – whether that’s as a side hustle or full-time job.

“The crux of it is that HMRC doesn’t trust the growing number of people with side hustles in the UK to accurately report how much money they’re making this way – so the tax office will go directly to these platforms, who will become responsible for recording this information and handing it over to HMRC.

“HMRC will then compare it with the tax returns submitted by these people. If the numbers don’t add up, HMRC has everything it needs to launch a tax investigation. Needless to say, it’s vital that people earning money this way make sure of their tax compliance.

“The Minimum Trading Allowance is £1000 a year. So anyone earning more than this via self-employment, and above the personal allowance, needs to pay tax on that income. The latest figures suggest there are 7.25m gig workers in the UK, with one in six adults working a gig job once a week – with this in mind, the incoming measures are set to impact millions.”

Read more:
Millions of gig workers and people with side hustles braced for tax crackdown

0
FacebookTwitterGoogle +Pinterest
previous post
Next in talks to buy fashion brand FatFace in £100M deal
next post
London cements top 10 global position as tech investment hub, trumping European rivals

You may also like

The Thrill of Gambling: Professionals’ Viewpoint

February 22, 2023

What Traditional Fashion Brands Can Learn from Direct-to-Consumer...

July 31, 2025

Getting to Know You: Daniel Mackle, Founder of...

May 31, 2023

Loyalty programs in business: why it is important

September 3, 2024

Getting to Know You: Marcia Tiago, Founder of...

March 10, 2023

Ex-Virgin Money chief Gadhia explores sale of finance...

March 22, 2023

UK Trade in Peril: Axing Negotiators Jeopardises US-UK...

July 1, 2024

UKEF support helps UK boat manufacturer charter new...

June 13, 2023

Rayner clashes with business secretary over reforms to...

September 16, 2024

Citi puts over a thousand British banking jobs...

January 13, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump’s Debanking Order Calls for Investigation, Something Tennessee Should Have Done

      August 11, 2025
    • Zelenskyy thanks NATO, European leaders for backing his push to join Trump‑Putin summit

      August 10, 2025
    • NATO chief says upcoming Trump-Putin meeting will be about ‘testing’ Russian leader

      August 10, 2025
    • Summertime and the living is uneasy on Capitol Hill

      August 10, 2025
    • Putin ally warns ‘titanic efforts’ are underway to sink Trump summit over Ukraine war

      August 10, 2025
    • Farage faces rising tension with younger Reform voters over net zero stance

      August 10, 2025

    Categories

    • Business (8,742)
    • Investing (2,191)
    • Politics (16,356)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved