An update from Roake & Cook: HMRC seeks to crackdown on 'side hustles'

HMRC are aiming to make it easier for them to detect discrepancies between the reported income by these platforms and the earnings declared by individuals on their personal tax returns.

This continues HMRC's aim to increase digital reporting and could expand to further platforms in the future.

What are the rules?

If you make more than £1,000 in the tax year, alongside your regular job, then you need to register as self-employed and report your income to HMRC.

Where to start?

Log all your ‘side hustle’ income and expenses. This will help you monitor if you exceed that £1,000 threshold and will save you time in preparing any necessary tax returns if you do.

HMRC have details on their website on how to register and you will need to be aware of deadlines for when to submit tax returns and pay tax due.

If you earn more than the threshold, it is often beneficial to seek advice from a professional. Fines and penalties for missing tax returns and/or unpaid tax can add up quickly.

Roake & Cook are Canterbury based accountants, and are proud Industry Partners of Produced in Kent.

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