HMRC will use the data the websites provides and compare it to self-assessments reports from individuals(Image: Getty Images/iStockphoto)

HMRC warning to anyone using Vinted or eBay as new rules issued

The new rules came into force at the start of 2024

03 Jan 2024, 05:00 by Ryan Paton · Liverpool Echo

HMRC warning to anyone using eBay, Vinted, Uber or Airbnb to make money amid new rules

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HMRC has issued a warning to people who make money via popular side hustle platforms.

Websites such as eBay, Vinted, Airbnb, Fiverr, Uber, Deliveroo and Etsy will need to record how much money people are making through them and report it to the tax office. The new rules were introduced at the start of 2024 and are designed to crackdown on tax avoiders.

HMRC will use the data the websites provides and compare it to self-assessments reports from individuals. The UK's tax, payments and customs authority said the new data will allow them to check for discrepancies, giving them grounds to launch an investigation - as our sister site, Mirror Online, reports.

The tax office is investing around £37million into the new initiative and is employing 24 full time staff to launch and enforce the new measures. In the UK, you can earn £1,000 in additional income each tax year alongside your regular job, which is known as your Trading Allowance.

Anyone who makes more than this will need to register themselves as self-employed and pay tax on these earnings. The new rules for these platforms are part of a wider crackdown on tax avoidance from people boosting their income through working side hustles, freelancing and self-employment.

The crackdown aims to target those who are under-reporting - or not reporting their earnings at all - and will not impact those who are following the rules. Self-assessment is the system HMRC uses to collect tax from people who don’t pay it automatically from their wages. So people 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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