Are you part of the digital gig economy? Do you work on Upwork or Fiverr? Maybe you host on AirBnB. Major tax policy changes are underway in this segment. And I’m here to let you know exactly what so that you are prepared.
Watch this video about the upcoming tax policy changes.
Digital platforms and tax policy changes
Up till now, the HRMC couldn’t monitor those working online on websites for freelancers or just side gigs in general. But that is about to change.
Here’s what’s new. The HMRC will get reports from the platforms that operate in this digital landscape. So, platforms like Fiverr and Upwork will have the responsibility of reporting freelancer earnings. They will be recording sellers’ income and then reporting it to the tax authorities.
Basically, with this tax policy change, tax authorities will have new supervisors in the digital space. Say goodbye to under-the-radar side hustles. Except, if your earnings are not that big, in which case you will be exempt from taxes. Check the video above to see if it applies to you.
Conclusion
HMRC’s tax policy changes will by all means change the world of side hustlers and freelancers. The goal is to keep tabs on secondary incomes and ensure overall tax compliance in the digital gig economy. Things will never be the same in the digital side gig space after New Year’s Eve.
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