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Here’s one to be aware of for those of you who are out there making a bit of money on the side from selling clothes on Vinted or cashing in on eBay - HMRC has introduced some new tax rules that could affect you.

The regulations - which came into force on January 1st 2024 - see the tax rules for people making a decent profit on side hustles such as selling second hand goods online or renting out a property on Airbnb being tightened up. 

Yep, as of the new year platforms including Vinted, eBay, Fiverr and Airbnb are now obligated to share details of how much money people are making online with HMRC so the tax office can check if people are paying the tax required on any money they’re making, allowing the department to launch investigations if it suspects anyone of tax avoidance.

An HMRC spokesperson said: “These new rules will support our work to help online sellers get their tax right first time. They will also help us detect any deliberate non-compliance, ensuring a level playing field for all taxpayers.”

On top of that, the updated regulations also cover services that many people use to bring in extra cash on the side, such as Uber driving, freelancing through sites like Fiverr and takeaway delivery driving for companies like Deliveroo.

The firms involved will be required to update HMRC at the end of this month (January 2024) and will begin sharing information such as bank account details and tax ID, as well as the value and volume of transactions for any sellers whose activity is of ‘significant enough size’.

So, who will be affected by the rule change? Well, the regulations, as set out by the Organisation for Economic Cooperation and Development (OECD), will only require companies to share data about sellers who make more than 30 transactions or over £1,735 a year.

In the UK, the Trading Allowance means people can earn up to £1,000 a year outside their normal job without having to pay tax, however once you pass that threshold you’re required to submit a self-assessment tax return and pay what is owed. 

Adam Jay, chief executive of Vinted, told the BBC that he didn’t think the new rules would impact many of the platform’s current users.

“It's actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information.

“It's only those people who are making a profit from selling second-hand items that might be eligible for tax and then it's about their own personal tax situation and what tax would ultimately be due to HMRC.

"We'll be actively reaching out to those sellers explaining what the new requirements are and why they exist.”

If you’re on the hunt for a side hustle to earn you a bit of extra cash in 2024, check out our guide to the Best Side Hustles for Students!