New Year clampdown on online sales earnings by HMRC could see almost one in six British workers paying more tax.
A New Year clampdown on online sales earnings by HMRC could see almost one is six British workers paying more tax.
From the start of the year, the UK is enforcing new rules as part of a global effort to clamp down on tax dodgers by the Organisation for Economic Cooperation and Development (OECD). Firms including Vinted, Airbnb and eBay are obliged to collect and share details of transactions with the tax authorities.
Under the new rules, the digital platforms will routinely report the income sellers are getting through their site which apply to the sales of goods, such as second-hand clothes or handmade items. The threshold for earnings from these sales is set at £1,000 a year – above this, online sellers must register as self-employed and file a self-assessment tax return at the end of the financial year.
According to MoneyZine, one in six British workers is currently working in the gig economy facilitated by many of the apps. This means that millions of self-employed or small businesses earning more than £1,000 from these kind of sales could be impacted. Failing to declare previous earnings with HMRC could mean they are hit with expensive financial penalties.
Alex Till, Chair of the National Enterprise Network, the country’s leading representative of business support for micro, small and start-up businesses, said the changes were a good reminder that getting support with taxes as part of a business support package either as a self-employed individual or as a startup or micro business is crucial.
“Research shows that working with a professional enterprise adviser leads to better outcomes for startup and micro businesses, “ he said. “Not only does it help entrepreneurs avoid costly mistakes and remain compliant, but the right advice ensures their business ideas can continue to thrive, increase sales and grow profitability.”
The National Enterprise Network is encouraging businesses looking to find a business support adviser near them to contact the National Enterprise Network which represents the country’s enterprise support organisations, offering independent and impartial advice, training and mentoring to new and emerging businesses.
Details can be found at:: https://nationalenterprisenetwork.org/directory/