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HMRC's Focus on Online Earnings
Starting 1 January 2024, due to the UK’s participation in the Organisation for Economic Cooperation and Development (OECD) agreements, digital platforms such as eBay, Vinted, Airbnb, OnlyFans, and other similar online marketplaces are required to collect and share information with HMRC. This allows HMRC to identify individuals who are earning taxable income that has not been properly declared.
If you’ve received a letter from HMRC, it may state "We have information that shows you've earned money (income) from online marketplace sales.” This means that HMRC has been analysing data from digital marketplaces and online content platforms to identify if you have underreported or failed to report your online earnings.
What to Do if You've Received a Letter
Receiving a letter from HMRC can be concerning, but taking proactive steps can help you address the issue effectively and minimise potential penalties. Here are the steps you should consider:
Read the letter carefully: Start by thoroughly reviewing the letter you received from HMRC. Understand what is being requested and the deadline for response stated. Ignoring the letter can lead to further actions from HMRC, including investigations and increased penalties.
Review your additional income: Carefully examine your online earnings and ensure that you have accurately reported all income to HMRC. This includes income from sales, rentals, subscriptions, or any other revenue generated through digital platforms.
Seek professional guidance: Navigating HMRC's requirements and ensuring compliance can be complex. Our team at Tax Dispute Experts is here to help. We can guide you through the process, ensuring that your disclosure is accurate and complete, and assist you in negotiating any penalties.
How Tax Dispute Experts Can Help
Our team of specialists have extensive experience in handling disclosures and resolving tax disputes. If you've received a letter regarding income from online marketplace sales, we will:
Conduct a thorough review of your tax affairs to identify any discrepancies and ensure all online earnings are accounted for.
Prepare and submit your disclosure to HMRC, ensuring it meets all requirements and minimises any potential penalties.
If penalties are assessed, we will negotiate with HMRC to achieve the most favourable outcome for you.
Contact Us
Need assistance with an HMRC enquiry? Contact us today to speak with our Tax Dispute Experts and protect your interests.