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New HMRC Reporting Rules for Side Hustlers: What You Need to Know



New HMRC Reporting Rules for Side Hustlers: What You Need to Know


Starting in January 2025, HMRC will gain access to data from popular online platforms like eBay, Etsy, Vinted, and Deliveroo, giving them unprecedented insight into sales made by individuals with side hustles. This change could affect up to two million people who sell goods or services on these platforms and are unaware that they may need to file a tax return.


These new reporting rules have raised concerns among tax experts, with the Low Income Tax Reform Group (LITRG) warning that many online sellers may not realize they’re liable for income tax and national insurance contributions. If you earn more than £1,000 in income from a side hustle, you will be required to file a self-assessment tax return for the 2023/24 tax year by 31 January 2025.


The potential confusion arises from the fact that the data shared with HMRC will be based on the calendar year, not the tax year. This could complicate calculations for many sellers, especially when each platform may have its own reporting method. Without clear guidance, this could lead to difficulties in determining the correct amount of tax owed.


January is already the busiest time of year for HMRC, and the introduction of this vast new dataset could cause significant delays and confusion. With HMRC's customer service lines often stretched, many taxpayers might struggle to get the support they need, leading to a potential backlog of issues.


If you operate a side hustle, it’s essential to be proactive in understanding your tax obligations. You may want to consider seeking advice early, rather than waiting until the self-assessment deadline approaches. Keeping thorough records of your sales and expenses will also help ensure you comply with the new rules.


At Derbyshire Accountants, we are here to help you navigate these changes and make sure you stay compliant with your tax obligations. If you’re unsure about how these rules might affect you, feel free to reach out to us for guidance.


With HMRC's increased access to data, it’s more important than ever to stay on top of your tax affairs. Let us help you make sense of the numbers, so you can focus on growing your business without the stress.


Please feel free to contact me should you wish to discuss this in more detail and to find out more.


Charlotte Derbyshire FCCA

Chartered Certified Accountant


Tel: 01256 591196

Mob: 07407 553 620

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