ARTICLE · 15 JANUARY 2024

January 2024 Update: HMRC Crackdown On 'Side Hustles'

Price Bailey

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From the 1st January 2024, HMRC has instructed that digital platforms such as Airbnb, Uber, eBay, Deliveroo, Amazon, Etsy, Fiverr and Upwork...

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Molly Rushworth

What was the issue?

From the 1^st January 2024, HMRC has instructed that digital platforms such as Airbnb, Uber, eBay, Deliveroo, Amazon, Etsy, Fiverr and Upwork, automatically report individuals earnings to HMRC directly as part of HMRC's crackdown to tackle tax evasion. This measure will affect digital platforms in the UK that facilitate the provision of services or the sale of goods by UK or other taxpayers. Since Covid-19 there has been a surge in people making income from 'side hustles', and therefore a growing number of individuals earning extra income that is not being declared.

HMRC's automatic access is crucial in tackling tax fraud as research conducted by finder.com suggests 44% of people engaged in at least one side hustle in 2023 in the UK, and on average earn £206 a week, amounting to an extra £10,701 per annum. Previously, HMRC could only request this data on an ad-hoc basis and did not have automatic access to this information.

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