The quest for information on “side hustle tax” has skyrocketed by a staggering 1,415% within a 72-hour period. This surge in searches is a direct result of growing concerns surrounding the reporting rules on HMRC’s online platform.
Platforms in the Spotlight
Notably, the rise in interest extends beyond the general term “side hustle tax.” Searches related to specific online selling platforms have witnessed significant spikes:
- eBay Tax: Searches surged by an impressive 874%.
- Vinted Tax: Experienced an 882% increase in searches.
- Depop Tax: Searches grew by 275%.
- Airbnb Tax: Witnessed a notable increase of 117%.
These figures underscore the widespread worry and confusion among individuals, reflecting the urgent need for clear guidance and support. The concern primarily revolves around long-standing tax rules, where earnings exceeding £1,000 classify the seller as a ‘trader’ under tax regulations.
Geographic Insights
Geographically, Bristol leads the charge in online traffic related to “side hustle tax,” followed closely by Manchester and Liverpool. In contrast, Glasgow registered the fewest searches on this topic in the UK.
Clarifying the Confusion
While many may fear not having declared earnings to HMRC for selling items on various online platforms, the Low Income Tax Reform Group (LITRG) clarifies the situation. The confusion arose from media coverage that referenced a ‘new tax,’ when, in reality, there are no changes to existing tax rules for individuals. The new HMRC reporting rules impact only the online platforms themselves.
Victoria Todd, Head of LITRG, provides reassurance, stating, “There is no new ‘side hustle tax,’ and no changes to the tax rules about what income needs to be declared to HMRC or when it needs to be declared.” She emphasises that selling unwanted personal items, even if it amounts to a significant sum, is generally not taxable unless individuals are ‘trading.’
Regional Interest
- Top Cities: Bristol, Manchester, and Liverpool show the highest online traffic for “side hustle tax.”
- Lowest Interest: Glasgow recorded the lowest number of searches in the UK.
In summary, the surge in searches highlights the need for clarity amid significant changes in the digital economy, emphasising the importance of guiding individuals through these shifts in a challenging economic climate.
