New HMRC Powers To Crackdown On Side Hustle Tax Evasion Come Into Force

The new rules came into force on the 1st January 2024 and are designed to clamp down on those that are not paying the required tax on a side hustle (i.e. any type of employment or business venture that a person engages in, in addition to their primary job or source of income), in which they earn in excess of £1,000.00 per annum. The first £1,000.00 (the tax-free trading allowance) is regarded as “casual or miscellaneous” income. Under the new rules, platforms such as Airbnb, Etsy, eBay, and Amazon are now required by law to report users earnings, bank account details, and tax ID to HMRC, which HMRC can then compare with self assessments to check for discrepancies.