Your Tax Obligations: Earning on PlanePorter

Summary:

Income earned through PlanePorter is considered taxable income by HM Revenue & Customs (HMRC). Recent changes in digital platform reporting rules (OECD) mean that HMRC now receives data on your earnings directly. This guide explains the Trading Allowance, when you need to register for Self Assessment, and how to stay compliant.

Is PlanePorter Income Taxable?

Yes. Money you earn from transporting items is classified as trading income (or "miscellaneous income" for casual users). It is distinct from employment income (PAYE) you might get from a regular job.

The £1,000 Trading Allowance

HMRC provides a tax-free Trading Allowance of £1,000 per tax year (6 April to 5 April) for individuals with trading or property income.

• Gross Income: This threshold applies to your gross income (total amount received before expenses), not your profit.
• Scenario A: You earn LESS than £1,000‍
• Scenario B: You earn MORE than £1,000‍

Partial Relief: A Simple Way to Calculate Tax

If you earn over £1,000, you can choose how to calculate your taxable profit:

1. Deduct Actual Expenses: Income minus (Flight costs + Transport costs). This is better if your expenses are high (e.g., the flight cost £500 and you were paid £600).‍
2. Deduct Trading Allowance: Income minus £1,000 (Flat Rate). You cannot deduct actual expenses if you use the allowance. This is better if your expenses were low (e.g., you were flying anyway and incurred no extra cost).

New Reporting Rules (OECD) - January 2025

From January 2025, digital platforms in the UK (including PlanePorter) are legally required to report Seller information to HMRC if they meet the OECD Model Rules thresholds.

When we report your details: PlanePorter must report your earnings to HMRC if, in a single calendar year, you:

• Make 30 or more transactions, OR
• Receive more than €2,000 (approx. £1,700) in revenue.

What this means for you: HMRC will receive a list of your earnings directly from us. If this data contradicts your tax return (or lack of one), it may trigger an investigation. It is essential to keep accurate records.

How to Register for Self Assessment

If you exceed the £1,000 allowance:

1. Register: You must register for Self Assessment by 5 October after the end of the tax year in which you earned the income.
2. File: Submit your tax return by 31 January (online).‍
3. Pay: Pay any tax due by 31 January.

Class 2 & 4 National Insurance

If your profits from self-employment (including PlanePorter) exceed certain thresholds (approx. £12,570 for Class 4), you may also be liable for National Insurance contributions. This is separate from Income Tax.

Checklist for PlanePorter Travellers:

• Keep a record of every transaction (date, amount).

• Keep receipts for all expenses (flights, trains, packing materials) in case you choose to deduct actual expenses.

• Monitor your total "side hustle" income against the £1,000 threshold.

• If you hit the threshold, register for a UTR (Unique Taxpayer Reference) with HMRC.