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Side hustle tax changes: HMRC reforms could save thousands from filing self-assessment tax returns

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The government plans to raise the tax-free threshold for trading income - here is how it could help your side hustle
The article from MoneyWeek discusses the new tax rules affecting individuals with side hustles in the UK. Starting from January 1, 2024, platforms like Airbnb, eBay, and others are required to report earnings to HM Revenue & Customs (HMRC) if an individual earns more than £1,000 annually from these activities. This change aims to close the tax gap by ensuring that income from side gigs is properly declared. Previously, many side hustlers might not have reported this income, but now, with platforms automatically sharing data, the onus is on individuals to declare this income or face potential penalties. The article also provides guidance on how to report this income, mentioning that if your side hustle profits exceed £1,000, you must register as self-employed and file a self-assessment tax return. It highlights the importance of keeping accurate records of income and expenses to manage tax obligations effectively.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/tax/side-hustle-tax-changes ]