TEE #034 Critical UK Tax Changes You Must Know For Your Side HustleNov 11, 2023
Read time: 2 minutes
Urgent news Etsy sellers - HMRC is aggressively targeting side hustle income with sweeping new regulations starting in 2024. Your Etsy shop's compliance and livelihood could be on the line if you don't take action now.
Here are the key facts you must understand and steps you should take today:
- Etsy will be mandated to share detailed user data directly with HMRC if you earn over £1,000 annually. There will be no place to hide unreported income once these rules take effect.
- A dedicated HMRC investigations team will extensively compare Etsy seller data to individual tax returns. Even the smallest discrepancies could trigger ruthless probes, hefty penalties and legal action against your shop.
- Immediately register for Self-Assessment if you haven't already. This is crucially important and will take less than 10 minutes:
- Go to the HMRC website and search for "register for Self-Assessment."
- Complete the online form with your personal and contact details.
- You will receive a Unique Taxpayer Reference number that must be included on your tax returns.
- Rigorously report all Etsy sales and expenses and pay owed taxes in full on time. Any inadequate compliance will grant HMRC free rein to aggressively come down on your shop.
- Consult a qualified tax professional and keep meticulous financial records. To manage your bookkeeping, I recommend using my Etsy Finance Tracker for seller accounting, download it now from SJ-Lewis.com. Staying on top of your finances is now a matter of existential urgency for your Etsy business.
Make no mistake, these new regulations represent an unprecedented HMRC crackdown on side hustle tax evasion. Strict preventative action must be taken immediately to protect your shop. This is a perilous time for non-compliant Etsy sellers - don't delay taking the necessary steps today.
Whenever you're ready, there are 3 ways I can help you:
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