Users on Vinted, eBay and Airbnb will face fresh scrutiny from HMRC (Image: Handout)

HMRC crackdown begins on eBay, Airbnb, Vinted - and any users making money online

Online sellers and side hustlers will face fresh scrutiny under new measures that will clamp down on tax avoidance.

by · Daily Record

HMRC is introducing a crackdown on popular websites including eBay and Airbnb and the people who make money on them.

Under a new rule starting today (January 1), the tax office is now requiring websites to record and report how much income people make through them. The new measure means anyone reselling clothing on Vinted or driving for Uber will face further scrutiny from HMRC.

The tax office will compare this information to self-assessment reports submitted by individuals. It allows HMRC to check for discrepancies and launch investigations if they suspect tax avoidance, as reported by The Mirror.

HMRC is investing around £37million into the new initiative and employing 24 full time staff to launch and enforce the new measures. The change includes platforms like Vinted, Fiverr and Upwork.

The Trading Allowance means people can earn £1,000 in additional income each year alongside their regular job. However, Those making above £1,000 must register as self-employed and pay tax on these earnings.

The new rules for digital platforms are part of a wider crackdown on tax avoidance from people making money on side hustles, freelancing and self-employment. The measures are aimed to target those who are under-reporting - or not reporting their earnings at all - and will not impact those who are following the rules.

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Who needs to submit a self-assessment tax return?

HMRC uses self-assessment to collect tax from people who don't pay it automatically from their wages. This includes those who are self-employed, freelance or do extra work alongside another job.

You will need to register for self assessment tax if in the last tax year:

  • Your income from self-employment work was more than £1,000
  • You got more than £2,500 from renting out property
  • You got more than £2,500 in other untaxed income
  • You had a P800 from HMRC saying you did not pay enough tax last year
  • You need to prove you’re self-employed, for example, to claim Tax-Free Childcare
  • You want to make voluntary Class 2 National Insurance payments to help you qualify for benefits

There are different ways to register depending on your circumstance and you can find out if you need to on the Gov.uk website through its questionnaire here. If you do need to register, you can do so online or by calling the self-assessment helpline on 0300 200 3310.

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