Soldato
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- 21 Jan 2010
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They used to dispatch DVDs etc from Jersey to dodge tax (VAT?), but think that loophole was closed some time back.
HMRC to crackdown on side-hustles
- Thread starter Resident
- Start date
They used to dispatch DVDs etc from Jersey to dodge tax (VAT?), but think that loophole was closed some time back.
Side hustles were a thing before the COL and will be a thing long after.
There are various reasons why people want to earn more money not just the COL.
While in principle I agree with the HMRC's decision, another small part of me doesn't. I acknowledge and respect the fact that there are going to be people in a financial situation that requires them to make a bit of money on the side, so they deliver for takeaways, sell stuff online - to me, good on them for using their initiative to keep the ship afloat. But now that this lifeline looks set to disappear, how will they make their money? I fear they may turn to other shady means of making money, for example selling drugs.
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Soldato
Criminals and wealthy individuals:
https://www.gov.uk/government/publi...comparable conditions by independent parties.
You'd be surprised (or maybe not) about how many 'little men' were the ones who fraudulently claimed COVID money they weren't entitled to.
Part of the reason a lot of the COVID money has not been recovered is because it's small amounts spread over a huge number of small businessess, rather than huge amounts going to a few criminals.
The amount of small business employees who were paid £700pm through PAYE, who then decided they were entitled to £2500pm in furlough money was staggering.
So they learnt from the mistakes of Al Capone then
I would be interested to see what the tax breakdown would be for other countries such as USA, France, Germany and maybe South Korea and Japan. To see if the spread is more even, between the different entites.
Soldato
No one is saying that you can't do this work, just that you actually need to pay tax on the income you earn. It may mean that we need to pay more to get a takeaway delivered if the person delivering it is currently fiddling their tax return but so be it.
Soldato
- Joined
- 21 Jan 2010
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I suppose it won't increase the cost of delivery, unless the pay increases.
If they do have to increase pay to make it economic for drivers as a result of tax, that raises questions about whether the previous pay was realistic, I guess.
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What actually needs addressing is the trades that pay next to nothing tax wise.
Take the bathroom fitters i've just used. They asked for pay in cash. i offered BT as I really did not fancy the trip the bank and the questions to why i needed 5k in cash.
They said sure, but thats 20% extra please if going through the bank, because it will need to be declared.
I agreed to the cash, because it saved me £1000.... BUT, this is a prime reason why this bathroom fitter has a massive house, fancy van and fancy car, wife who doesnt need to work... It's unfair. I get paid well... £4500 per month before tax and everything else... yet im left with £2750 per month after all the taxes...
Not fair.
(however, they did a great job, do i think i got value for money? well... could have been cheaper.... but you get what you pay for with trades)
Take the bathroom fitters i've just used. They asked for pay in cash. i offered BT as I really did not fancy the trip the bank and the questions to why i needed 5k in cash.
They said sure, but thats 20% extra please if going through the bank, because it will need to be declared.
I agreed to the cash, because it saved me £1000.... BUT, this is a prime reason why this bathroom fitter has a massive house, fancy van and fancy car, wife who doesnt need to work... It's unfair. I get paid well... £4500 per month before tax and everything else... yet im left with £2750 per month after all the taxes...
Not fair.
(however, they did a great job, do i think i got value for money? well... could have been cheaper.... but you get what you pay for with trades)
Soldato
I doubt the people who own 2nd and 3rd homes and running them as air bnb's are struggling to make ends meet
I'm not suggesting they can't do the work, however I suspect that "side-hustle" work has suddenly becomes a lot less feasible now they face tax deductions.
Soldato
The demand for whatever service they are doing isn’t going to go away, we just all have to accept paying more for stuff if the current wage is only feasible if you don’t pay tax on it.
One out of the box option would be for the government to force the likes of YouTube etc to withhold basic rate tax on payments to U.K. creators which at least reduces the tax gap and places some of the admin burden on companies. Taxpayers could then either pay additional tax due via self assessment (or reclaim it if they have personal allowance left).
Caporegime
Do you pay tax on Youtube earnings?
Soldato
- Joined
- 25 Nov 2005
- Posts
- 12,650
Imagine if instead of a task force setup to catch tax dodgers, it was a task force setup to watch over the tax wasters in government and councils
Soldato
The Big Computermabob awaits....
Soldato
Why wouldn’t you?
The debate in this thread is frankly bizarre. Some posters are actually advocating that its ok to commit tax evasion and its really clear that they don't actually understand what the article is even referring to. You can spot the accountants a mile off though 
.
This article is referencing a new data exchange protocol which will operate across countries who are members of the OECD. See here: https://www.oecd.org/tax/exchange-o...to-sellers-in-the-sharing-and-gig-economy.htm
As others have said, this isn't new for HMRC, they don't even make the rules, they are a tax collection and enforcement agency. They are probably going to get some new data or be able to get data from existing sources more easily or frequently than it does now but that's it. As for the 'crack down', since when was 24 people 'a crack down'? This is business as usual work for them, click bait headline and all that. The positive part of this is that those that use platforms will also get an annual report about their income which they need to declare so they can more easily do what they are required to do.
As for offshoring income and wealth to evade tax, that's not exactly easy these days due to that pesky international co-operation again. Just ask Bernie Ecclestone https://www.bbc.co.uk/news/uk-67088503
.This article is referencing a new data exchange protocol which will operate across countries who are members of the OECD. See here: https://www.oecd.org/tax/exchange-o...to-sellers-in-the-sharing-and-gig-economy.htm
As others have said, this isn't new for HMRC, they don't even make the rules, they are a tax collection and enforcement agency. They are probably going to get some new data or be able to get data from existing sources more easily or frequently than it does now but that's it. As for the 'crack down', since when was 24 people 'a crack down'? This is business as usual work for them, click bait headline and all that. The positive part of this is that those that use platforms will also get an annual report about their income which they need to declare so they can more easily do what they are required to do.
As for offshoring income and wealth to evade tax, that's not exactly easy these days due to that pesky international co-operation again. Just ask Bernie Ecclestone https://www.bbc.co.uk/news/uk-67088503
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Soldato
What would happen if Youtube decided to classify the monies as a gift rather than a payment, a present given for using their platform?
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