HMRC has warned those who do not declare their extra income risk being vulnerable to fines, advising that any profit over £1,000 must be declared, as the government plans to crack down on side businesses.
This affects sellers on platforms like Etsy and eBay, and the decision has upset many, as it coincides with a time when many must sell second-hand goods to make ends meet.
A spokesperson from small business consulting organization Venture Smarter advised, “With the government cracking down on extra income, it can be off-putting for some to start a side hustle; however, it is important to remember that only income over £1,000 will be taxed.
“To declare your tax online you will need to register with the HMRC through their website – once you are registered you will be issued a UTR this is a Unique taxpayer’s reference. This will allow you to file your self-assessment forms online, remember, if your annual turnover exceeds the VAT threshold, you will need to become VAT registered.
“To avoid incurring fines and penalties, it is crucial to stay aware of the deadlines and ensure that you complete your self-assessment accurately and pay any taxes on time. By following these steps, you can not only sell online with ease but also avoid the legal consequences set out by the government for tax avoiders.”
Etsy share prices continue to fall amid HMRC crackdown on side-hustles earning over £1,000