The phrase “side-hustle” has entered everyday language of late. Individuals supplement their main income with an activity that brings in extra cash in their spare time, use an under-utilised asset or flex their creative muscles with a particular skill that they might have.
Side hustles have always been around but as they have become more prevalent, HMRC have increasingly paid more attention and accordingly sought to get a piece of the action.
At the beginning of 2024 the likes of Vinted, Airbnb and eBay were obliged to share details of sellers income to allow HMRC to home in on anyone they believe should be declaring extra income.
As Government finances continue to be stretched, HMRC has been challenged with closing the tax gap of approximately 5% (the amount HMRC believes should be declared in tax and the amount actually declared and collected).
The latest group to be targeted by HMRC are pet breeders and details obtained by HMRC from animal registration organisations seem to have triggered a flurry of letters to those selling litters of puppies and kittens. With the increased value of sought-after breeds, an activity that used to barely breakeven is now highly lucrative and again a good target for HMRC to raise additional revenue.
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