A woman with a side-hustle has issued a warning over HMRC rules. Sharing her advice on TikTok, Steph Buttery cautioned those with a “side hustle” on platforms such as Etsy, eBay, TikTok shop, Depop, and Vinted to declare their income to the tax office.
“Your boss may not know about your side hustle, but HMRC does,” she warned in a video on TikTok that has gone viral ahead of the self assessment deadline on January 31. She said: “If you earn a combined £1,000 [or more] over these platforms, you need to declare it by January 31.”
She then explained to her followers “exactly what HMRC knows about your income”. “With new data rules, they’re [HMRC] are in the loop for everything,” Steph went on to say, in a warning to her loyal following on the social media site.
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“If you’re selling clothes on these, they’re not exempt – combined earnings over £1,000 need to be accounted for and reported to HMRC,” she said. She went on, saying: “HMRC ensures rental income doesn’t slip through the cracks.
“All of their data is collected and is more comprehensive than ever so you need to make sure you’re declaring what you’re earning online. Make sure you’re staying informed and staying compliant.”
In reply, a viewer fumed: “The UK is broken when it comes to tax, we work hard to making a living yet the government wants it! We’re basically slaves earning money but for the government, not for ourselves.” A second asked: “Can you please help me understand how this works when you’re using a print on demand service service?
“Do I need to declare sales revenue or actual net profit?” Steph replied: “This sounds like a full on hustle so over £1,000 revenue you need to declare, but you can also include all of your costs of goods – you may also have to register as sole trader.”
The TikTok user said: “What about streaming on Twitch? Even if Amazon have all your information?” Steph replied: “Yes any additional income needs to be declared if it is over £1,000. Even twitch, I probably should have added that, sorry.”
She clarified: “It’s turn over, you will need to prove there is no profit by filing a self assessment. Anything over £1k they are passing onto HMRC and it’ll trigger a tax audit if you get spot checked.”