HM Revenue and Customs is preparing to launch an unprecedented wave of investigations targeting millions of Britons with side incomes, as new digital reporting rules come into force.
The tax authority's crackdown, set to begin in April 2024, will give HMRC unprecedented visibility into earnings from popular platforms like Vinted, Depop, Airbnb, and Uber.
What's Changing and Why You Should Be Concerned
Under the new regulations, digital platforms will be required to automatically report your earnings directly to HMRC. This means the tax office will have real-time access to your side income data without you needing to declare it first.
While the rules officially target those earning over £1,700 annually from 1,000 or more transactions, experts warn that any level of undeclared income could trigger an investigation.
Who's Most at Risk?
The new measures particularly affect individuals earning money through:
- Online marketplaces (eBay, Vinted, Depop)
- Short-term rental platforms (Airbnb)
- Ride-sharing and delivery services (Uber, Deliveroo)
- Freelance and gig economy platforms
- Online tutoring and creative services
Many people engaging in these activities mistakenly believe their earnings are too small to declare, but HMRC is clear: all trading income must be reported.
How to Protect Yourself from HMRC Action
Tax specialists recommend taking immediate action to ensure compliance:
- Register for self-assessment if you haven't already
- Keep detailed records of all income and expenses
- Understand the difference between casual selling and trading
- Seek professional advice if uncertain about your status
- Review your tax position before the new rules take effect
Failure to declare taxable income can result in substantial penalties, interest charges, and in severe cases, criminal prosecution. The message from tax experts is clear: don't wait until HMRC comes knocking.
