Busting Side Hustle Tax myths!

Side hustles are booming, but there’s confusion about taxes and data sharing with HMRC. Let’s clear the air on these myths and make your side hustle journey a bit smoother!

Myth 1: HMRC Spies on Airbnb, eBay, and Vinted 🤯

Nope! HMRC doesn’t stalk your transactions. While they can request info, it’s not an automatic data-sharing party. Privacy laws and authorization are key!

Myth 2: Side Hustle Income = Instant Tax Trouble 🙅‍♂️

Nope! You’re not automatically taxed. Report your earnings, keep good records, and know your tax-free allowance. Only income above that gets the taxman’s attention.

Myth 3: HMRC Targets Small Fish 🐟

Nope! Everyone’s in the tax game! HMRC cares about compliance at all levels. Whether big or small, play by the rules, keep records straight, and you’re good!

Myth 4: You can only make up to £1,000 from selling old items before you must pay tax 💸

Nope! You can make more than £1,000 if you are selling personal possessions that are not being sold at a profit. The £1,000 is a trading allowance set by HMRC, if you make £1,000 or less in income over the course of the tax year, then you are not required to register with HMRC, report the income, or pay tax on it!

Conclusion:

Let’s debunk the myths, stay savvy with side hustle taxes, and enjoy the extra income hassle-free! 💸

If you have any further questions on whether or not you need to declare your income, please get in touch! Info@hawkinsaccountants.co.uk