new HMRC side hustle tax Jan 2024

https://moneyweek.com/personal-finance/tax/hmrc-crackdown-on-workers-who-ear...

howard, can you post full link, that didn't work, thanks.

Always been a benefit to stop trading before incurring VAT
I havnt read the link but they have been talking about it for a while, they see small business as having an unfair advantage over the big boys.

A person selling the same c rap bought from alibahbah and not charging vat

I thought HMRC had access to everyone's bank accounts anyway?

it's not new, taxable income has always been errr taxable. They are just being more aggressive in tracking down tax dodgers by making the large platforms report to them. The £1000 is the exemption from tax for side earnings, been in force for a while.

swifty copying that and paste works for me

dave this seems newish https://en.wikipedia.org/wiki/Connect_(computer_system)#:~:text=Connect%20is...

new vid   https://www.youtube.com/watch?v=mKCYZ-XsF_I

howard long links don't work on everyone's browser/forum settings. You can put a dot on the line below that solves the problem.

https://moneyweek.com/personal-finance/tax/hmrc-crackdown-on-workers-who-earn-extra-income
.

Deliveroo, justeat and the like will tell taxman who works for them

About fecking time

howard these things have always been taxable, the only difference is that the platforms are reporting to hmrc.

yes that's the big difference. Do u really think most people making say 2k  a year on ebay on top of their jobs have been paying /filling in a self employed tax return ?

making = profit btw

Younger types are also about to get familiar with the double swipe, ergo tax on savings interest. If they hold a decent amount of cash in good accounts, outside of a wrapper. For obvious reasons it's not really been a consideration for over a decade.

…only if they work.
The irony being not working and having substantial capital would still mean you could almost live off the interest and not declare it

yep so 'pro' gamblers who pay no income tax also get to cream off the interest from unwrapped cash funds tax free. they also get free taxpayer money on modest pension contributions. some irony tbf!

They don’t expect too many to be successful at it.
But as I’ve been saying of late, the AC is fashioned in such a way as to target ‘pros’

…just as with the banning of smoking, I don’t envision another generation ever being able to become a pro gambler after we retire.

would be quite interesting to know how many people are able to get a substantial proportion of their living costs via gambling, over a period longer than a year.

I did it for about three years, but when I moved to majoring on specials I was able to do that and have a job, as it took place mainly in weekends and evenings. Plus I wanted to get a mortgage.

probably more from poker than sports/racing, but that is going to be badly affected by ACs.

"I don’t envision another generation ever being able to become a pro gambler after we retire".    That's what Alex Bird said before no tax on course no tax off course and betfair.

More likely to be gaming these days

Cider • October 27, 2023 1:41 PM BST
yep so 'pro' gamblers who pay no income tax also get to cream off the interest from unwrapped cash funds tax free. they also get free taxpayer money on modest pension contributions. some irony tbf!

I think the taxpayer money is peanuts, just of a 'housewife's pension size.

720 a year taxpayer bung is too bad for someone who pays zero tax on their income

#not too bad

or savings interest, as noted.

Is that how much it is.

You have to remember that if the person is paying substantial amounts of Premium Charge which boosts the profits of an exchange which is then subject to a gross profits tax he is paying plenty of tax , it is just not classed as 'income tax'.

I'm at the liberalist/capitalist side of the spectrum, so it's all fine by me personally. In fact I've advised pros that I know to utilise that option. Over 40 years with typical growth in equities, could be pushing 100K.

Another irony, when I returned to working after betting for that 3 year period, I qualified for working tax credit at the time. For the next year, as the qualification is based on earnings in the previous tax year, which were zero. It was about 60 quid a week, not bad!

Everybody needs a great accountant.

and more than the £3600 into pension, if required, you can find a side hustle that pays less than £1k pa, and pay class 2 NICs to get a year's state pension credit for a 1/5 the cost of voluntary ones.

howard (OP) -- "Will not bother us as we can't deposit much and winnings are tax free."

Is that true for everyone? It's true for us proper punters, obviously, but there's the odd course bookmaker trading on here, or so I've heard.

It would not surprise me if winnings are made subject to tax. All the fuss about ACs and writing to MPs by people whining they can't have thousands on will have tipped off the government. In the past, betting was not subject to income tax because the government was worried about losers (who far outnumber winners) claiming their losses back, but there are ways round that.

A bookmaker is a trade and subject to tax, that isn't anything new. A marketmaker on the exchange is def a very grey area and I suppose they have let it slide because it is difficult to distinguish between them and a prolific backer or layer without detailed investigation.

If I buy a car on Ebay for 10k and sell it on Ebay a couple of years later for 5k can I offset this 5k "loss" against my taxable income please?

If it’s a business vehicle I think you can under depreciated assets
25% of it of something, I forget.