Transcription
HMRC's new powers are scary. For years, people have always thought HMRC, oh well, they're going to be fighting the the really rich, the billionaires that are dodging taxes. Not anymore.
Now, with their new powers and what their agendas seem to be, they appear to be focusing on the little guys. The hardworking small one-man bands. The lady that's selling cupcakes. The guy who's shipping stuff on Amazon drop shipping and selling stuff on eBay. Car boot sales. These are the guys the HMRC are now coming for. The people that make Britain Britain.
And when you see the new rules that they are phasing in right now as we speak, quietly, but also alongside the digital ID, I think their agenda is becoming clearer day by day. Banning cash. You say, "Oh, they've not banned it." Well, they've not banned it, but people are just being pushed to not take it. Only a matter of time before it just never used. Why? Well, this is all part of the agenda and HMRC's new powers where, in my opinion, they're coming after to crush the little guy.
So, how are they doing this and what are the new rules and things that they're phasing in? Well, they're currently expanding something which is known as Making Tax Digital. From April 6th next year, 2026, all self-employed people and landlords that are making more than £50,000 a year will have to register for Making Tax Digital. Now, here's the thing. The year after that, they're dropping the threshold to £30,000. And then the year after that, in 2028, it's going to be £20,000. So, if you've got a little side hustle, you're selling things on eBay or Amazon, you're a landlord, you got a couple of properties, bam, these are the people where they're going to be watching you like a hawk digitally.
So, how does this work exactly? How will it affect you if you're currently maybe you're self-employed at the moment and using your annual set of returns? Well, for a start, they won't be annual anymore. They will be done quarterly, which means every 3 months you're going to have to submit your accounts to the HMRC. Now, my cynical mind, because I'm a little bit cynical of the HMRC and the government, is that the reason they're making you do it quarterly is because, let's be real, you'll probably miss it, won't you? At the moment, it's once a year, and we all know, okay, it's coming up. I've got to do it for the year. Doing it quarterly means you're probably going to miss payments, which means you're going to get fined for missing payments. And every day late your payment comes, they're going to charge you interest. So Rachel Reeves said that she doesn't want to raise taxes, which they've done through the fiscal drag and many other things, but they're not just going to raise them, they're also going to find more ways to give you fines and penalties for paying late.
Which leads me to my next point, which is direct recovery of your debts. Now, whilst this idea was introduced in 2015, it was opposed. It didn't happen. But guess what? It's now in the test and learn phase. September 2025, the government published an article on their website. It was also mentioned by Rachel Reeves very briefly in the budget. But what this means is they can basically just take money from your account. So if they believe that you owe money and they send you they have to send you a couple of notices first through the post. Hey, you owe us a grand and it has to be a grand or more. And then if you don't pay it, what can happen now is they can just take it from your bank. Like how is that possible? How how is it possible that the HMRC can just take? So let's say you're a hardworking person and you've got a little eBay business and you've got 50 grand in the bank and then the HMRC think that you owe them 20 grand and they send you a few letters and you're like, "Oh, do I what? Let me meet my accountant." And then before you know it, bap, 20 grand just comes out your account. Do you know how much they have to leave you with as well? Because obviously they can't strip your bank completely clean clean and dry, they only have to leave you with five grand. So if you've got 50 grand, 100 grand and they think you owe that that money to them, they can take it from your bank and leave you with five grand. I I I is this how and this is happening. This is currently in the test and learn phase. That means test and learn for who? Learn for you. No, learn for them. They're learning how to get really good at being able to do this. Isn't that mindblowing? What do you think about this? I I I just can't believe it. This is on their website. Look, issue briefing 22nd of September 2025. Direct recovery of debts. I mean, they are literally the only institutional organization in the entire country where if they think you owe them money, don't have to take to court. Don't take you to court. No, just Lloyd's Bank. Give us the money, please. Like in what in what world?
And the next way that they're coming for the small people, the small entrepreneurs, is they are expanding their AI technology. Oh, did you know that the government have AI? See, isn't it interesting how they are so useless? The councils are so useless. Everything's so backlogged. They see the Home Office are a complete utter joke. But when it comes to the small guys paying their taxes, they're absolutely on it. They use AI. They've got an AI device and it's called Connect. Now, they're spending a lot of money on this, making it better, using obviously the improvements to AI that are happening all the time. And what they're doing with this AI is they're using it to cross-check everything about you. Now, this is not just for the big people. They're doing this for everybody, very small people. They will check how many times you go on holiday. If you go on, if you're going away luxury holidays more than twice a year, you'll be flagged. And how do they know that? Do they have access to your bank statements? Well, not just that. They they can see your Instagram, your your Facebook, your everything. They can see it. And it's all linked through AI. You know, back in the day, people used to say to people like me, like conspiracy theorists, they'd say, "As if the government are really interested in you, though, as if the um WELL, YEAH, THEY KIND OF ARE. And when they can use AI and just have it flag everybody to me, please who is traveling on holiday and looking like they're spending money. Flag them all to me and now let me see how much tax they're paying and now let me see how much money they've got in their bank and they can just see everything using AI instantly. So if you're you know making 15 20 grand a year through the books but then they see you traveling that you you'll get flagged they will flag you. Look man, I'm a brokerie by the way in case anyone's watching. I I don't wear watches. I'm just a very average person. It can see land registry. It can go through all different websites. Read T's and C's. If you've got an Airbnb business, you know, just one property, you renting out your spare room on an Airbnb, they can see it. They can pick it up. How many bookings did you have? How much tax did you pay? See it with AI. Selling something on eBay. Oh, you're bidding and you put something on and they can see it. How much you buy it for? How much you sell it for? This is ridiculous.
And it now makes sense, doesn't it? Why they want to ban cash? They want cash gone. And cash is very difficult now. I went I went shopping recently and I only brought cash as an experiment. I couldn't even get a cup of coffee. Going into places, oh, I've got 20. Oh, sorry. We don't take cash because cash is the one thing they can't track. They can't see it.
Now, you might say, Samuel, I'm paying my taxes, so what do I have to worry about? And here's the thing. That's fair. If they can see everything, does it really matter if you're a law-abiding citizen and you're prepared to pay your fair share of taxes? The problem is a couple things. First problem is why are they spending so much time and so much energy going after these small little entrepreneurs with a side hustle, the nurses that are selling a bit on eBay to try and top up their income when there's billionaires that know the system and are paying very little in percentage wise on their tax and and and they're not they're not don't seem worried about that at all. It's the spirit and the heart of it. It's the fact that did you know that they've got a new snitch scheme? This is called the formal incentive program. What this is is the government are bring introducing a snitch scheme, what I call it, where if you snitch on your friends that aren't paying their fair share of taxes, you can depending on the amount of how much tax that that they're not paying, you can claim commission on it, up to 30% commission against people's income tax. I mean, the snitch scheme, the spirit of this is just, in my opinion, disgusting. I'm all for a free market. I'm all for people just getting by, having a side hustle without being spied on by the big brother HMRC to ensure that you pay every penny. And if you forget to file your now every 3 months, you're going to have to pay interest to them. I I I think it's a joke.
So, what's the solution? Well, the solution is don't be put off having a side hustle. Don't be put off being a landlord or doing service accommodation. You just need to know the HMRC approved legitimate ways that you can bring your tax bill down legitimately. Cuz a lot of people previously have been not paying taxes by just doing, you know, a bit of cash in hand here or I'm just not going to tell them. And and and previously the government haven't really bothered you. You might be a massage therapist and you just think, "Okay, I'll take a bit of cash and I'll do a bit of this and I and it's all right. I only make 25 grand." As if the government are going to care. Now they do.
So, what you need to do, you can very easily do this. In fact, I created a whole separate video which I'll leave a link in the description called the 10 ways that you can HMRC approved bring your tax bill potentially down to zero. So, I'd highly recommend watching that and learn the small ways, the small things that you can do and how you can structure your money in such a way where you HMRC approved don't necessarily have to pay the same taxes by mitigating it down using the same ways that the wealthy do. So, that's the answer.
So, this is a warning video. Be prepared for the government to spy on you, to find you, and to come down on you like a ton of bricks. Don't be put off. Don't be disheartened. Learn the rules of the game and play to win. And I really hope that you enjoy the video, the 10 ways to legitimately pay potentially no tax, HMRC approved. I'll leave it in the description. Check it out. And guys stay safe but stay hungry and keep striving.