One in three side hustlers fail to declare taxable earnings to HMRC
A third of Britain’s side hustlers have admitted withholding their earnings from HMRC, new research has found, despite warnings from the tax office.
According to survey findings gathered by betting site Oddsmonkey, a quarter of Brits now earn money on the side from their day job, covering the rising costs of living by selling online or renting out a spare room.
However, one in three of the nation’s side hustlers earning above the 1, 000 threshold admitted they had not declared their earnings to HMRC.
If people are earning above the threshold outside of their regular income and meet HMRC’s badges of trade? qualifications and do not register for self-assessment as soon as possible, they could face an instant 100 fine and risk further penalties for outstanding tax liabilities.
__________________________________________________________________________________ Airbnb and eBay users making on the side? cash urged to come clean to HMRC UK residents making a regular income through platforms like Airbnb and eBay have been urged to consider whether they are required to submit self-assessment tax returns to HMRC
The research also uncovered the most popular ways people had found to top up their incomes, as well as attitudes towards side hustling.
Although a majority undertook additional work out of necessity to cover bills, rents and mortgages, a third said their side hustle was more fulfilling than their regular career. Almost four in ten said they would turn to it into a full-time job if they could.
Online marketplaces have emerged as a leading enabler for Britain’s side hustle economy, with 68 per cent selling unwanted items on eBay and Facebook Marketplace to earn an average of 165 per month.
The most lucrative prospects were found to be in selling beauty products, worth 249 per month, and renting out a spare room, with Airbnb users
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.