Online Platforms to Submit Info to HMRC

From 1 January 2024 new rules apply which require UK-based online platforms to, from 1 January 2024, collect information about people who make money through their platforms and from 31 January 2025 (for the preceding calendar year i.e. the period 1 January 2024 to 31 December 2024) – send this information to both HMRC and to the individual themselves.

The rules should help make it easier for people who make money through online platforms to comply with their tax obligations as the platform operators must give them details of their earnings. This information should help them complete their tax returns for example.

• Digital platforms are now able to share user information directly with HMRC as of January 1 2024, in an effort to cut down on tax evasion being dubbed the ‘Side Hustle Tax’
• Anyone using recognised digital platforms such as Etsy or Amazon to generate a side income will find that HMRC now has instant access to your bank account and bank details. HMRC will use this information to monitor if you are paying the correct amount of tax

What do I need to do? The threshold for action is set at earning more than £1,000 in your side hustle. If you are earning more than this amount per year, you must register as self-employed and file a self-assessment tax return at the end of the financial year.