From Fortune Magazine:

Gen Z is making money through side hustles like Depop and Airbnb, but they may soon owe taxes on the income. The UK’s tax collection agency, HM Revenue & Customs, is requiring digital platforms to report income data for users who make more than £1,000 a year through online sales.

U.K.-based online platforms will now report information to HMRC at the end of January, 2025. The new rules aim to improve compliance and create a level playing field for taxpayers. Gen Z, the oldest millennials, has flocked to hire platforms as a way to earn extra income.

HM Revenue & Customs introduced new rules for UK-based online platforms to report income data of users who make more than £1,000 a year from online sales. The new rules aim to support compliance and detect non-compliance.

Vinted’s chief executive, Adam Jay, told the BBC that only a small proportion of users will trigger the income threshold for tax disclosure. If a seller is already paying taxes on their sales, no additional reporting is required.

Digital platforms will start collecting personal information about sellers and their earnings. The law is aligned with the Organisation for Economic Cooperation and Development’s (OECD) goal to fight tax evasion. The collected information aims to detect errors or fraud by taxpayers in reporting income sources.



Read more: Gen Z side hustle earnings from eBay and Depop to be declared to HMRC