HMRC 'side hustle check' for Vinted, Depop and eBay sellers explained ahead of January deadline

The deadline for filing a HMRC self assessment return is nearly here, and an expert has explained how to prepare for the new 'side hustle' checks being performed.

Over the past few years the growth in side-businesses has been significant. This year, new rules came into effect introduced by HMRC to ensure individuals and micro-businesses who need to pay tax on the money they make from online platforms are aware of their tax obligations.

The new rules impact anyone who sells goods or services online on platforms such as Vinted, Depop and eBay. Prior to the introduction of the new measures, HMRC could request information from online selling platforms.

Now, the new rules mean that platforms must routinely report on sellers' transaction data which will allow HMRC to ensure that all income earned through side businesses is tracked in order to tackle tax evasion and to detect any deliberate non-compliance.

Since the initiative was announced in October 2023, it has raised concerns amongst those that sell goods online, as the threshold for obligatory self-assessment is relatively low at £1,000.

If your whole business or side hustle is making income via digital platforms, you are likely to be affected by the new HMRC regulations when doing your tax return in January 2025.

Rob Rees, divisional director at Markel Direct, specialist insurer of freelancers and small businesses, has broken down the ‘side hustle’ HMRC regulations, and has provided guidance on who will be impacted and shared tips for keeping on top of your tax return.

Anyone making money from online platforms could be impacted by the change. However, those operating side-businesses that trade online are most likely to be affected.

The new measures will apply to anyone