Should eBay sellers and Airbnb hosts pay tax?

Many Brits like to make some extra income by selling items on eBay or renting out a room on Airbnb, but many are unsure whether they have to pay tax on these earnings.
Now, cloud accountancy software company FreeAgent has warned these online sellers and room sharers that they could face a £100 fine if they don’t submit a tax return and risk further penalties for any outstanding tax.
HMRC is getting more sophisticated at tracking these kinds of online transactions and, as always, ignorance is not an excuse that washes with the taxman.

FreeAgent warning to eBay sellers and Airbnb renters

With the January 31 tax deadline fast approaching, accounting software company FreeAgent has warned anyone earning money through Airbnb, eBay, Gumtree and other websites to check their tax status before they land in hot water with HM Revenue and Customs.

FreeAgent believes that many people earning money on these sites are not aware that they need to declare the income.

Failing to pay before the January 31 self-assessment deadline will result in an automatic £100 fine. And after HMRC announced a new computer-powered crackdown on ‘sharing economy’ microbusinesses, many individuals could face further penalties for not paying tax owed.