Side hustle sales reporting could ‘cause chaos for taxpayers’

HMRC needs to ramp up communications to ensure side hustlers are aware that they need file a tax return as up to two million people could be affected

The Low Income Tax Reform Group (LITRG) has warned HMRC to increase publicity about new online platform reporting rules which will give the tax authority access to a vast database of information about individual online sales.

New rules means that from next January online platforms such as eBay, Vinted, Deliveroo and Etsy will have to share sales data with HMRC from January for the first time.

LITRG said HMRC has not done enough to notify people with a side gig that they may have to comply with this, dubbing it the ‘side-hustle time-bomb’.

HMRC will have the ability from January to catch up with many sellers of trinkets and homemade items who LITRG say may not consider they are trading or are unexperienced in having to deal with income tax and national insurance.

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