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.

Cloud Accountant Tax Reclaim Service

Cloud Accountant (a part of now offer a tax reclaim service through their website.
Many people do not know they can claim tax relief in respect of cleaning your own uniforms or protective clothing, some union and professional subscription fees and tools or equipment you have bought personally to enable you to do your job.

Xero TaxTouch

In the US Xero have launched, TaxTouch, a tax app designed to help contractors & freelancers stay on top of their accounts and to help them remove the tax burden.
Unfortunately if you search the UK apple store the app is not currently available in the UK. Being specialist Contractor Accountants we will keep our eye open for its UK launch.
TaxTouch appears to be a lighter version of the full Xero app and hence is available at a lower monthly cost.

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.

Has your company filed a PSC register yet?

From 6 April 2016 most companies have been required to hold a register detailing all the 'people with significant control’ (PSC) in the business. So far, guidance is not clear about the consequences of non-compliance, but the possibility of criminal charges or the prospect of HMRC investigations should be enough to get any company to fill in the form.

Childminder v NannyTax

On the face of it you might expect childminders and nannies to be taxed similarly but HMRC make a clear distinction between them.
A nanny is normally employed to work at a family’s household to look after that family’s children while a childminder will look after children, often from a number of families, at their own place of work (often their own home).
A nanny is therefore employed by the family and generally needs to have PAYE and National Insurance Contributions (NIC’s) deducted by the family from their pay.
A childminder however is self-employed.