I have a question about paying tax in the UK as a freelancer.
As I understand it, sellers on Fiverr should declare their earnings to HMRC.
My question is, what’s to stop someone simply not doing this?
Unless I’m wrong, a seller doesn’t link their national insurance number or anything with their Fiverr account, just their name and email address etc.
I don’t see why people don’t just not declare it? Especially if they can withdraw earnings via PayPal.
How would HMRC possibly know about earnings? Is it just based on people’s honesty of declaring them?