You may need to pay tax if you use websites and apps to sell services like:

  • renting out your home to tourists
  • renting out your business premises, home or any other property for business purposes
  • doing tasks, eg cleaning or odd jobs
  • renting out your personal equipment, eg power tools

This may not be your main job or business. Selling services online like this is sometimes called the ‘sharing economy’ or ‘peer-to-peer’ (P2P) business.

When you pay tax

You may have to pay tax on the profit you make, unless your total taxable income including these profits is less than your Personal Allowance and any reliefs you’re eligible for.

You can deduct allowable expenses of providing your service from your taxable income.

When you don’t need to pay

You don’t pay Income Tax on money you get from occasionally selling personal possessions online (but you may need to pay Capital Gains Tax).

You usually don’t pay Income Tax on anything you do where you just cover your costs, eg car pooling.

You can contact the Income Tax helpline if you’re not sure whether you should be paying Income Tax on any of your earnings.

Paying Income Tax

First work out if you need to pay Income Tax.

If you do, you may need to complete a Self Assessment tax return or contact HMRC to declare all your income, including what you’ve earned through online networks.

You can contact the Income Tax helpline if you’re not sure whether you should be paying Income Tax on any of your earnings.

Rent a Room scheme

If you rent out furnished rooms in your home for non-business use, you may be eligible for tax relief through the Rent a Room scheme.