Business
HMRC Increases Scrutiny of Online Earnings, Raising Concerns Over Tax Return Accuracy
HM Revenue & Customs (HMRC) is intensifying its focus on “side hustle” earnings, requiring online platforms like eBay, Vinted, and Airbnb to submit income data for 2024 by the end of January. However, concerns have been raised that the discrepancy between the UK’s tax year, which runs from April to April, and the OECD’s calendar year reporting period could lead to mistakes on tax returns.
The Low Incomes Tax Reform Group (LITRG) has warned that the calendar year data provided by online platforms could cause confusion for casual sellers, especially those filing their tax returns for the first time. Meredith McCammond, a technical officer at LITRG, explained that only earnings from January to March 2024 would be relevant for a self-assessment due this year, yet platforms will report the entire 2024 calendar year, which could lead to inaccurate figures.
“Just one quarter of the data people will receive is pertinent to the current tax return,” McCammond said. “That could lead to confusion, especially for first-time filers during HMRC’s busiest period.”
Under the new rules, users earning over £1,700 or completing 30 transactions in a year will have their income information shared with HMRC. While this is not a new tax, it may cause some individuals who were unaware of the reporting requirements to face unexpected tax bills. Dawn Register, a tax expert at BDO, warned that even if the data provided is incomplete, HMRC could still launch an investigation if a seller’s turnover appears unusually high.
“The new rules may well mean there are some nasty surprises for people who are either unaware of the existing legislation or haven’t declared their earnings,” Register noted.
However, many casual sellers will remain unaffected by the changes due to the UK’s £1,000 trading allowance, which exempts individuals from paying tax on occasional trading income. HMRC spokesperson emphasized that the new rules primarily target those engaged in consistent trading or making significant gains from sales.
Miruna Constantin, a tax expert at RSM UK, noted that there had been public concern when the reporting procedures were first introduced last year. “Chaos ensued when people feared HMRC would suddenly tax all their earnings from selling unwanted Christmas gifts,” Constantin recalled. “HMRC has since provided detailed guidance.”
To avoid errors, experts advise sellers to carefully match their platform statements with their tax obligations, particularly by paying attention to dates, allowances, and potential capital gains. If unsure, sellers are encouraged to seek advice from HMRC or a tax professional.
While the government hopes the expanded reporting will reduce accidental non-compliance, sellers still face the risk of “nasty surprises” if they fail to fully understand the reporting process.
Business
Barry-Based Social Enterprise Sees 20% Surge in Sales After Gavin and Stacey Cameo
The Goodwash Company, a social enterprise based in Barry, has reported a 20% increase in online sales following its appearance in the highly anticipated Gavin and Stacey Christmas special finale.
The company’s luxurious, cruelty-free handwash was prominently featured in the bathroom of Pam and Mick West in the special, marking a major milestone for the Welsh brand. The cameo brought national attention to the company and generated a significant boost in online engagement. In just two days, TikTok views soared from an average of 2,000 to nearly 100,000.
Mandy Powell, founder of The Goodwash Company, expressed her excitement at the unexpected feature. “Being featured in Gavin and Stacey has been incredible for us,” Powell said. “As a proud Barry resident and long-time fan of the show, it means so much to see our products on screen. I didn’t know our ‘Sebon Dwylo’ handwash would appear, but when I saw it behind Smithy in the bathroom, I let out a little scream of excitement!”
The appearance on the beloved show has significantly raised the profile of The Goodwash Company, which was established in 2018 with a commitment to providing sustainable, vegan, and cruelty-free skincare products. The brand is also known for reinvesting its profits into Welsh communities and charitable causes. The company’s growth has been supported by the Business Wales Accelerated Growth Programme (AGP), which has helped it scale sustainably.
In addition to the sales increase, the company’s visibility has been boosted, particularly for its bilingual branding, which incorporates both English and Welsh. Powell expressed pride in being able to showcase ethical Welsh products to a wider audience. “The Welsh language is central to our brand, and we’re thrilled to see that our products are resonating with so many people,” she said.
Looking ahead, The Goodwash Company is keen to build on the momentum generated by its Gavin and Stacey appearance. Powell revealed plans to expand its online marketing efforts, grow its presence on TikTok, and pursue new partnerships. “The increased visibility and sales spike have been phenomenal,” she said. “We’re excited to continue celebrating Welsh culture and growing our brand both in the UK and internationally.”
With its strong foundation in ethical business practices and a growing fan base, The Goodwash Company is poised to capitalize on its newfound exposure and continue expanding its reach worldwide.
Business
Tax Tips for 2025: How to Save Money and Avoid Stress, Say Experts
Taxpayers could save both money and headaches in 2025 by committing to better tax practices, according to leading audit and tax advisory firm Blick Rothenberg. As the deadline for the 2023/24 tax return looms on 31 January 2025, experts are urging individuals to plan ahead and take proactive steps to minimize their tax burdens.
Robert Salter, a Director at Blick Rothenberg, points out that while many people set personal resolutions for health and lifestyle, managing financial health should be equally prioritized. “Being on top of your taxes plays a significant part,” Salter said. He emphasizes that taxpayers who complete their tax submissions early can avoid the stress of last-minute filing and reduce the risk of penalties from HM Revenue and Customs (HMRC).
For those who have not yet filed their tax return, Salter recommends resolving to submit it earlier this year. By doing so, individuals can ensure they have ample time to address any issues and avoid penalties. “It’s always best to tackle taxes early,” he advises.
In addition to timely submission, Salter highlights the importance of taking full advantage of available reliefs. Taxpayers in higher income brackets, such as those paying tax at 40 or 45 percent, may be overlooking valuable opportunities. For example, gift aid contributions made during the 2024/25 tax year can be claimed through a self-assessment tax return, potentially delivering immediate savings. Furthermore, these contributions can be brought forward for relief in the previous tax year if submitted before the filing deadline.
Pension planning also presents an opportunity to reduce tax liabilities. Salter suggests that employees receiving bonuses in February or March consider directing them into a pension scheme through an employer contribution. This strategy may help lower the overall tax bill, as pension contributions are typically tax-deductible.
Salter also highlights a National Insurance Contributions (NICs) easement available until 5 April 2025, which allows individuals to fill in any gaps dating back to 2006/07. By taking advantage of this easement, taxpayers can boost their future state pension payments.
For couples, particularly where one spouse is a non-taxpayer or lower-rate taxpayer, reviewing how investments are held can be beneficial. Transferring assets to the lower-rate taxpayer can make the most of personal allowances and potentially reduce the overall tax burden.
Finally, Salter advises individuals to review their PAYE tax code for the 2025/26 tax year to ensure that any pension contributions, professional subscriptions, or benefits-in-kind are accurately reflected. This will help ensure the correct tax relief is applied, avoiding any surprises when the return is filed.
By adopting these simple tax resolutions, taxpayers can save money and reduce stress throughout 2025.
Business
Britain’s Presence at CES Declines, Raising Concerns Over Innovation Potential
Britain’s participation in the Consumer Electronics Show (CES), the world’s largest technology trade fair, has significantly decreased in recent years, according to Gary Shapiro, CEO of the Consumer Technology Association (CTA), which organizes the event.
Shapiro expressed disappointment over the UK’s reduced engagement at the show, calling it “a shame” and noting that it “doesn’t make sense” given the country’s ongoing potential in technological innovation. He highlighted that other European nations, such as France and the Netherlands, had a stronger presence in Eureka Park, the section of CES dedicated to start-ups. He even noted that Ukraine had a more visible presence at the event than the UK, adding that the British government no longer provides the same level of support it once did for such international events.
CES, held annually in Las Vegas, draws thousands of exhibitors and around 400,000 visitors. It is a major global platform for the latest in technology, attracting both industry giants like Microsoft and a wide array of smaller start-ups. This year, only 41 UK companies are scheduled to attend the event, including BT Group’s incubation arm, Etc, healthtech company Elvie, and location-based service provider what3words.
The decline in UK attendance stands in stark contrast to 2019, when over 100 British firms participated under the leadership of then-International Trade Secretary Liam Fox. During that year’s show, eight UK companies won innovation awards, and the government touted “millions of pounds worth of deals” signed as a result. Shapiro described it as “crazy” that the UK no longer places as much focus on CES, considering the historic ties between the two countries.
“We are the largest technology event in the world by far,” Shapiro emphasized, noting that CES attracts over 50,000 international visitors and remains the largest business event in the United States.
Experts are now questioning whether the UK’s reduced presence at CES signals a broader shift in its tech industry, particularly given the current climate of innovation and international collaboration. Despite the decline in UK attendance, CES continues to serve as a vital venue for tech companies to showcase their innovations to a global audience, sparking both concern and calls for greater investment in the UK’s presence at future events.
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