Associate
Jokes on them. I have a cash in hand only fans set up.
HMRC to crackdown on side-hustles
- Thread starter Resident
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You are trolling now, this cannot be a real human interaction.
Again, try reading the point rather than just hating on people with a side hustle.
I mean if the poor people with JustEat can lawyer up and get it paid into swiss bank accounts, according to you, as the loop hole exists, that is absolutely reasonable for them to be doing as such. The poor can win, as long as they can set up swiss bank accounts and have enough funding for lawyers.
Again the problem is, the poor do not have access to those sort of elements, therefore it becomes a poor tax because the rich can pay to mitigate it, but the poor cannot. Is it a formal "tax" well yes it is because its income tax, but again I am stating this acts as a poor tax because it will only affect poor people.
This really is not rocket science mate.
Soldato
You don't even need to go far up the food chain to see it. People are having to use some pretty shrewd tactics just to get by.
Soldato
I'm not hating on anyone with a side hustle. I have done Uber eats deliveries and earned secondary income in various forms over the years. Guess what, I spend less than an hour a year declaring the income via self assessment.
And without going into detail, part of my job involves reviewing the information already provided to HMRC by the likes of Just Eat. It's by no means as simple as getting it paid into an offshore account of you want to avoid declaring it. The amount and type of information provided makes its pretty straightforward to argue where the money was earned and who benefitted from the money.
The issue isn't so much that it's hard to identify who should have paid the tax on the money, the issue is that there simply aren't enough resources to pursue every company and individual, as so many people are at it. This new legislation makes it easier and less time consuming to do.
Take the landlord example above. Its pretty easy to identify those people who have assets way beyond their means, it's just difficult to get them to actually pay what they owe because they ignore requests for information and do a disappearing act.
It's a resource issue for the most part. Anything that comes in to place to make it less time consuming to chase those who evade tax, regardless of how much, is surely a good thing.
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
By their own figures there's £207 billion not accounted for?
Suspended
This is a bit lol
The rich don't get their wealth from "work" they get it from wealth acquisition. Even if they started with a mega salary sooner or later they become richer from wealth accumulation rather than income, unless they are one of the very few who spend it all.
How many millionaires do you think have a side hustle with etsy that is worth their while not declaring?
Soldato
It doesn't miss the point though. The government/HMRC aren't saying you can't do a second job. It's the only logical position that it's fair for all people to be taxed correctly.
It sucks that people need to go and get those jobs, but that is a separate argument. HMRC applying correct tax rules will always be the right thing to do.
Warning of big HMRC tax crackdown on side hustles from January 1
Anyone using platforms including Airbnb, Fiverr, Upwork, Uber, Deliveroo and Etsy could be impactedwww.walesonline.co.uk
HMRC will be requiring side-hustle platforms such as Deliveroo, Etsy, AirBNB, Fiverr and all similar digital side-hustle platforms to report earnings of those using them.
Taxi firms etc are also going to be required to comply.
Could this spell the end of the side hustle?
It'll be interesting with the taxis because there are a lot of shady practices with driver not declaring all their income and some even only declare working 16hrs or less to qualify for benefits whilst actually doing 50+ hours. (FIL is a recently retired taxi driver so he's spilled the beans)
I hope so. So many loopholes for taxi drivers. Just recently read about all the Manchester taxi drivers register in Wolverhampton because the fees are half the costs that Manchester charge.
The council should really be leveraging ANPR to monitor these drivers and fining them if they quite clearly making a large number of pickups/drop-offs in Manchester. Should automatically trigger a fine if the registered keepers address is in Manchester but the taxi license is clearly far away.
Caporegime
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So the rich get richer through tax avoidance and wealth accumulation.
So we should focus on ensuring the side hustles get taxed accordingly and appropriately and not sorting the loop holes which allow for such wealth accumulation and tax avoidance.
The rich get richer through not following tax regulations, while the poor increase their poverty due to not having resources to combat tax avoidance legislation.
Suspended
Thats not what I said.
The rich do follow tax regulations. At times people think they have found some massive loophole that rarely ends well.
There are many groups who avoid tax.
People with side hustles
People who move location (eg to Monaco like Hamilton)
People who can structure well
Companies that can be registered elsewhere
etc
The problem with a lot of our tax law is its old, it was mainly written on the presumption that individuals and companies were native. IE UK based, owned etc
And the vast majority probably were 40 years ago.
Simply the tax law has failed to keep up with globalisation.
Doesn't anyone have a side-hussle going on in some form, if only occasionally. I've repaired PCs for cash for example.
People have been so shafted by government and corporations over the past decade and seen how MPs have set things up nicely for themselves. There isn't much sympathy left for the state.
People have been so shafted by government and corporations over the past decade and seen how MPs have set things up nicely for themselves. There isn't much sympathy left for the state.
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The problem is that going after large corporations is vastly time consuming, costly and risky. Even rich individuals like Harry “my dog ate my offshore bank account” Redknapp get away with it because tax law is too complicated for juries to understand.
It’s much easier to scare less well-off folk.
It’s much easier to scare less well-off folk.
Man of Honour
So true.
Funnily enough years ago I'd have been "too right, you're earning from another job you should do a self assessment and do things properly" - now I'm so jaded by the government and state of the country that I almost don't care... That said, I hate how large corps get away with it, but it's easier to clamp down on the ordinary person because they can't be arsed to deal with the mega firms because they want the business to stay.
Theoretically, HMRC have access to your bank accounts, Paypal accounts, crypto accounts, etc so HMRC should eventually pick up on the fact that people don't aren't paying enough tax. However, HMRC are a typically underfunded publicly owned organisation with little incentive to go after multiple side hustles where the amounts involved are trivial to point that it'd be more expensive to take action than just to leave it be.
Soldato
This just isn’t true, though, at least for corporates. Evasion is significantly more difficult for large companies for a multitude of reasons, one being it’s very hard to avoid a paper trail when most if not all of your transactions are electronic.
The tax gap on income taxes is consistently the highest, suggesting the bulk of issues sit outside corporate taxation where offshoring and concealment is easier and a bigger issue. This should go some way to tackling the latter. However from a corporate tax perspective, small businesses contribute a disproportionate amount of the corporate tax gap, underpaying by 19% vs 2% for large businesses.
Wolvo council issued just over 22,000 plates between 01/05/23 & 01/08/23.
When you do the math there are only 64 workdays in that period, council office hours around 7.5hrs.
It equates to just under 1 plate per minute. Can't tell me those have been properly checked.
