HMRC to crackdown on side-hustles

[Mercenary Keyboard Warrior]

If you have a second job and its PAYE then you will already be paying tax anyway

Its only the stuff outside PAYE thats mainly "missed". Such as ebay trading etc

 

[DanTheMan]

HMRC already have access to a lot of this information (especially things like Uber Eats, Deliveroo, Just Eat, etc).

I doubt HMRC will be coming after you for selling a grands worth of stuff on Etsy but if you're earning thousands of pounds each year from delivering for Uber eats or running an Air BnB, then you absolutely should be paying tax like the majority of us.

 

[Hades]

UK GOV: Here is the results of our position of power for over 13+ years, you cant get a dentist appointment, cant get an ambulance or seen by a doctor, your energy bills and food bills will be the highest you'll ever have to pay. Also a recession is on the way, better hope you keep those jobs!

Also the UK GOV: we are closing every loop hole for ordinary people to make some extra cash and have other opportunities.
Also the UK GOV: all PM's can still do their second jobs.

Its a funny time of year again where we send up fireworks to cheer for a guy who didn't destroy parliament, whilst we all let parliament destroy us.

Sadly this is right on the money.

 

[DanTheMan]

Quite ironic moaning about not being able to get an appointment with the NHS or help with energy and food bills, whilst simultaneously moaning about having to pay the correct tax on your earnings.

Nobody is making it more difficult to have a side hustle, just the tax evasion. Completing a self assessment return on small secondary earnings is really quite simple.

You can berate the government for incompetence and mismanagement (and rightly so) but there would be significantly more money to fund public services if people paid the right amount of tax on earnings. That goes for huge multinationals and us individuals.

 

[sidimmu]

Quite ironic moaning about not being able to get an appointment with the NHS or help with energy and food bills, whilst simultaneously moaning about having to pay the correct tax on your earnings.

Can we get some quotes of people moaning about having to pay the correct level of tax?

You can berate the government for incompetence and mismanagement (and rightly so) but there would be significantly more money to fund public services if people paid the right amount of tax on earnings. That goes for huge multinationals and us individuals.

I would bet that the corporations avoiding tax is a bigger pot to go after, than it is to go after individuals. Should be easier to deal with as well - audit and fight an organisation for an extra couple million in tax, or chase down 20000 individuals for their failure to declare £3000 in extra income.

 

[DanTheMan]

Can we get some quotes of people moaning about having to pay the correct level of tax?

I would bet that the corporations avoiding tax is a bigger pot to go after, than it is to go after individuals. Should be easier to deal with as well - audit and fight an organisation for an extra couple million in tax, or chase down 20000 individuals for their failure to declare £3000 in extra income.

Stating that the gov are closing every loophole for ordinary people to make extra cash and have other opportunities?

The article and proposed legislation doesn't seem to impact anything relating to earning extra cash, except ensuring the tax is paid on the earnings. If the issue isn't about tax, what is it about?

And yeah, going after big corporations provides a much bigger return but sadly these companies will use every bit of legal knowledge they can get there hands on to fight HMRC and the UK gov. Transfer pricing is an absolute pain in a globalized economy.

 

[bloodiedathame]

Nice that the Government is going to go after people forced to work an extra job because they're trying to make ends meet...

 

[sidimmu]

Stating that the gov are closing every loophole for ordinary people to make extra cash and have other opportunities?

Unsure how this falls in line with irony of public services not being provided. As guess what, it does not matter how much tax this government receive from the public or corporations, the service wont be fixed or resolved to an acceptable level.

The article and proposed legislation doesn't seem to impact anything relating to earning extra cash, except ensuring the tax is paid on the earnings. If the issue isn't about tax, what is it about?

And yeah, going after big corporations provides a much bigger return but sadly these companies will use every bit of legal knowledge they can get there hands on to fight HMRC and the UK gov. Transfer pricing is an absolute pain in a globalized economy.

The actual common sense thing to do here is to go and close the loopholes related to these larger business'. If it is only going to affect individuals, who are not earning a lot and need additional funds due to the failings of the government and rising prices, that make's this whole thing a poor tax then. You just stuck up for and defended a poor tax, well done mate.

 

[Uther]

The likes of Baroness Mone will be sniggering on their yachts as they cruise the Med.

 

[DanTheMan]

The government and civil service have been trying to close transfer pricing loopholes for years, which is the primary way that large corporations avoid paying tax in revenue generated on the UK.

There's a whole load of documents out there that explain the strategy and provide updates.

https://www.gov.uk/government/publi...comparable conditions by independent parties.

It's not a poor tax as nobody would be paying any more tax than they would if they earned it via PAYE. It's not even a new tax

 

[Hades]

Quite ironic moaning about not being able to get an appointment with the NHS or help with energy and food bills, whilst simultaneously moaning about having to pay the correct tax on your earnings.

Nominally I agree with you. But nowadays I have utterly lost faith in more tax fixing those issues. It will simply be more tax wasted by the government in some way.

 

[sidimmu]

The government and civil service have been trying to close transfer pricing loopholes for years, which is the primary way that large corporations avoid paying tax in revenue generated on the UK.

There's a whole load of documents out there that explain the strategy and provide updates.

https://www.gov.uk/government/publications/transfer-pricing-documentation-requirements-for-uk-businesses/transfer-pricing-documentation#:~:text=Transfer pricing is a means,comparable conditions by independent parties.

It's not a poor tax as nobody would be paying any more tax than they would if they earned it via PAYE. It's not even a new tax

Thanks for not replying directly to me.

It is a poor tax though as the only people are going to be affected are poor people wishing to have a side hustle and a bit of extra cash. As you said, corporations will pay lawyers to get out of paying their true figure, therefore its only the poor who wont be able to fight it, therefore its a poor tax.

 

[robfosters]

UK GOV: Here is the results of our position of power for over 13+ years, you cant get a dentist appointment, cant get an ambulance or seen by a doctor, your energy bills and food bills will be the highest you'll ever have to pay. Also a recession is on the way, better hope you keep those jobs!

Also the UK GOV: we are closing every loop hole for ordinary people to make some extra cash and have other opportunities.
Also the UK GOV: all PM's can still do their second jobs.

Its a funny time of year again where we send up fireworks to cheer for a guy who didn't destroy parliament, whilst we all let parliament destroy us.

No one’s saying they can’t make extra cash, they’re just saying they have to pay the correct amount of tax on their income

 

[DanTheMan]

Nominally I agree with you. But nowadays I have utterly lost faith in more tax fixing those issues. It will simply be more tax wasted by the government in some way.

I agree but all things equal, if everybody paid the tax that they owed, that equates to significantly more money for public services.

Thanks for not replying directly to me.

It is a poor tax though as the only people are going to be affected are poor people wishing to have a side hustle and a bit of extra cash. As you said, corporations will pay lawyers to get out of paying their true figure, therefore its only the poor who wont be able to fight it, therefore its a poor tax.

It's not a tax.

 

[Diddums]

Nominally I agree with you. But nowadays I have utterly lost faith in more tax fixing those issues. It will simply be more tax wasted by the government in some way.

I keep parroting the same thing over and over, we need a full review of where all the money's going. We're all paying more and more tax, our products are getting more expensive and shrinking, our roads are in a crap state, our emergency services and medical industry are all crying for more funding, large projects like HS2 are being scrapped or cancelled, so this begs the question - where is the money going?

If they could demonstrably prove that the money is being spent wisely and in the interest of the taxpayer it'd put a lot of minds at rest but the overwhelming feeling at the moment is that we're all being porked by the very people who should be looking after us whilst they all chill out in their mansions.

They'll need to change something soon, or their day of reckoning will come. There's only so much the people will put up with and once the spark goes off, the fire will be immense.

Personally I think they should all the strung up and made a mockery of but they use the police force as their own personal bodyguards so there's nothing we can do, and they know it.

 

[200sols]

I keep parroting the same thing over and over, we need a full review of where all the money's going. We're all paying more and more tax, our products are getting more expensive and shrinking, our roads are in a crap state, our emergency services and medical industry are all crying for more funding, large projects like HS2 are being scrapped or cancelled, so this begs the question - where is the money going?

If they could demonstrably prove that the money is being spent wisely and in the interest of the taxpayer it'd put a lot of minds at rest but the overwhelming feeling at the moment is that we're all being porked by the very people who should be looking after us whilst they all chill out in their mansions.

They'll need to change something soon, or their day of reckoning will come. There's only so much the people will put up with and once the spark goes off, the fire will be immense.

Personally I think they should all the strung up and made a mockery of but they use the police force as their own personal bodyguards so there's nothing we can do, and they know it.

What does the government spend money on? | Institute for Fiscal Studies

In 2022–23, government spending was almost £1,200 billion, or around 45% of GDP. Health spending is a growing share of the total.

ifs.org.uk

 

[Hades]

I agree but all things equal, if everybody paid the tax that they owed, that equates to significantly more money for public services.

Again agreed. But back in the 1970's, 1980's 1990's and to some extent the 2000's we paid less tax and still got a much better service from local and central government in all walks of life. Money seems to make little difference.

Sorry, I'm just being a grumpy old man reminiscing about how things used to be better. I agree your point is right, in theory.

 

[sidimmu]

No one’s saying they can’t make extra cash, they’re just saying they have to pay the correct amount of tax on their income

Thanks for missing the point.

It's not a tax.

Are you trolling at this point now?
Its a tax, that is not a tax, that is not a poor tax, but benefits the rich. Comical.

Again, it is a poor persons tax, as the poor are the people who are going to lose out as a result. You said yourself, the rich will lawyer up and not pay their correct amount, so it becomes something only the poor people pay, therefore a poor tax.

 

[BUDFORCE]

Yup jokes aside, 20 years ago I would have been all for this.

But from what I have learned, a lot of it through my profession, is that the higher up the food chain you go the worse it is.

I see portfolio landlords with literally hundreds of properties declaring the same figure, something like £7700 p.a employed PAYE income. It might have gone up this tax year, but why that figure? Because it puts them just below employer (which is themselves dont forget) NI/tax threshold, it's even more effecient then declaring self employed income.

I know for a fact some these people are making £20k-£30k+ per month.

They displace it through companies and trusted family members and whatever else.

And I can only imagine this gets worse the further up the food chain you go, you know the old holding companies setup it tax havens, then the UK based company happes to make exactly the same amout of profit the holding company charges them for whatever made up service etc

But they cant go after these people because ultimately they have well paid accountants and layers and HMRC is a goverment funded organisation with limited resources and quite frankly public sector works who dont want to haslle. There is also a point where the amount of money that would have to be spent on legal battles simply outweighs the return in tax revenue.

So its easier to just go after the little guy.

What a wonderful world.

 

[DanTheMan]

Again agreed. But back in the 1970's, 1980's 1990's and to some extent the 2000's we paid less tax and still got a much better service from local and central government in all walks of life. Money seems to make little difference.

Sorry, I'm just being a grumpy old man reminiscing about how things used to be better. I agree your point is right, in theory.

Yeah I agree. Unfortunately, a huge amount of the issue is purely due to us living longer, and far more global competition.

Are you trolling at this point now?
Its a tax, that is not a tax, that is not a poor tax, but benefits the rich. Comical.

Again, it is a poor persons tax, as the poor are the people who are going to lose out as a result. You said yourself, the rich will lawyer up and not pay their correct amount, so it becomes something only the poor people pay, therefore a poor tax.

It's not a tax.

And good luck lawyering up to argue that money from Just Eat, Etsy, Ebay etc being paid into your bank account and not declared anywhere is ok.