HMRC sets its sights on side hustlers again

More than £55 billion worth of side hustle sales data is to be handed to HMRC by platforms, as the tax authority ramps up compliance on small online traders and service providers.

Platforms, such as eBay and Airbnb, have once again been compelled to release a huge tranche of data about users’ activity.

What new data does HMRC have access to?

The new figure of £55 billion in transactions is nearly double the figure disclosed in 2025 (£25.5 billion) as HMRC attempts to apply more pressure on side hustlers who haven’t been reporting their income and paying the correct amount of tax.

These new figures, released in a Freedom of Information request, suggest that the tax authority is once again looking to target side hustlers in the coming months.

For 2025, HMRC confirmed it had received reports on the incomes of 3,988,892 online sellers from 811 online marketplaces and short-term rental websites.

The tax authority was given powers to access these records under new powers introduced in January 2024.

These require digital platforms to share information where a user makes more than 30 sales in a year and/or earns more than £1,700.

How much can you earn from a side hustle before it needs to be reported to HMRC?

Every taxpayer can earn up to £1,000 per tax year in gross income from a side hustle without needing to report it to HMRC.

This is known as the Trading Allowance and is available to everyone, regardless of their wider tax position.

This allowance covers the total income from all side jobs. If you exceed this amount, then you must register for Self-Assessment and complete a tax return.

What to do if HMRC contacts you about your side hustles

HMRC has already run a significant letter campaign in 2026 targeting people involved in online trading.

Given the figures released and the growth of online sellers meeting the threshold, compliance checks are expected to increase in the coming months.

If you are contacted by HMRC about your side hustles, the first step should be to check that you have exceeded the threshold.

HMRC offers an online checker tool for sellers to confirm whether they should be reporting their earnings and paying tax, which can be found here.

If you do exceed the threshold and need support reporting your income, you should seek professional advice from an experienced accountant. If you need support from our team, please get in touch.