Navigating the HMRC changes in 2024: a guide for sole traders in the gig economy
As of 1 January, 2024, the HMRC has made some changes that may affect many of our members, particularly those involved in the gig economy. We’ve put together some key information to help you prepare effectively.
Overview of HMRC changes
HMRC has introduced new tax regulations which will impact how you report income, especially if you earn through gig economy platforms like Uber and Airbnb. If you do earn income in this way, the gig economy platform you’re using will need to send the details directly to HMRC. It’s likely you’ll pay tax on your profits, unless your total gig income is less than £1,000.
Accurately reporting income
If you’re a sole trader or gig worker, it’s essential that you accurately report your income to HMRC. It’s not just about compliance: it’s about ensuring the financial health of your business. Whether you’re a driver, a freelancer, or renting out a property, these changes will likely affect you.
Self Assessment paper tax return deadline: 31 October, 2023
Self Assessment online tax return deadline: 31 January, 2024
Self Assessment tax payment deadline: 31 January, 2024
Missing these deadlines could result in penalties and interest charges, so it’s important to be proactive and make sure you file in time.
If your business meets certain criteria, for example if your turnover is greater than £85,000, you’re required to charge VAT and file VAT returns. These are generally due quarterly and vary based on your accounting period.
How we can help you
At Tide, we’ve designed our products and features to help streamline your accounting, making it easier to stay on top of these changes. You can customise your invoices, set up direct debits, and automatically categorise your transactions – helping you stay accurate and efficient when it’s time to file your returns.
Staying informed and prepared is the best way to ensure a smooth transition into the new tax year.
If you’ve got any further questions, take a look at our FAQs or reach out to us in the app. We’re here to help!
Image by Kelly Sikkema on Unsplash