Lots of people sell good or services online through platforms such as Ebay, Etsy and Amazon, and income earned in this way should be declared to HMRC. Similarly, if you generate income from your social media presence as an influencer or by creating content for platforms such as YouTube, TikTok or Instagram, this income must also be declared to HMRC.
Digital platforms and online marketplaces are required to report the income made by sellers on their websites and apps to HMRC, in a move affecting gig workers, 2nd jobbers, freelancers and self-employed people. HMRC is now using this intel in a targeted campaign reminding people that they must declare all of their income and pay appropriate tax and NICs on their earnings.
HMRC are writing to people stating that they have information indicating that the recipient has not declared some, or all that income on their relevant tax returns. If you receive such a letter please do not ignore it! You can use an online tool to check whether you do have income you should tell HMRC about.
If you do have income you need to tell HMRC about, you can use the online Digital Disclosure Facility or Disclosure Service to do this. The disclosure facility web page also has calculators that you can use to work out any penalties and interest due. You will then have 90 days to pay what is owed, or agree to Time To Pay arrangement.
If you don’t have income to disclose, you should inform HMRC by completing the certificate of tax position that was enclosed with the letter.
