From 1st January 2024, HMRC will implement a new rule that will require freelancer platforms to report their users’ earnings to them.

Sources say this is mainly aimed at those who have a side hustle, and earn a significant amount along side their main job.

The rule will apply to all freelancer platforms that operate in the UK, including popular platforms such as eBay, Deliveroo, Etsy, Fiverr, Airbnb, and Uber. These platforms will be required to report to HMRC the total amount of income that each user earns through their platform.

What do you need to do if this applies to you?

• You must register as self employed with HMRC, if you earn over £1000 from a side hustle.
• Keep accurate records of your income and expenses so you can file them.
• File a tax return each year and pay any tax that you owe.

The new rule does not change your obligation to report your income to HMRC. However, it does mean that HMRC will have more information about your earnings, so it is important to make sure that you are reporting all of your income accurately.

If you require advice on registering as self employed or completing a tax return, get in touch today and we would be delighted to help.

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