Developments for 2024

HMRC is looking to crack down on tax evasion for freelancers selling goods/services on certain digital platforms. From 1st January 2024 HMRC require these platforms to report earnings made by each user. The platforms that are thought to be in the mix for this new ruling include Airbnb, Ebay, Fiverr, Upwork, Uber, Uber Eats, Deliveroo, Amazon and Etsy Currently it is estimated by HMRC that £1.2 billion in tax is lost each year due to tax evasion from sellers on such platforms. HMRC has committed to an investment of nearly £37 million to ensure compliance to the new rules.

HMRC will then use this information submitted by the digital platforms to identify taxpayers who may be under-reporting their income.

So advice is, if you earn income over £1,000 (before deduction of allowable expenses)

· Make sure that you are registered as self-employed with HMRC

· Keep accurate records of your income and expenses

· File a self-assessment tax return each year and pay any tax that you owe.

If HMRC finds that a taxpayer has not reported all of their income, they may be subject to a penalty or even prosecution

Oakdene Accountancy can work with you to ensure that you are compliant and fully understand the rules. It is a small price to pay to appoint a professional as the potential costs of getting it wrong are high.