best for CASH ADVICE
Confusion over tax has led to worry about using sites like eBay or Vinted. Occasionally selling unwanted items won’t land you with a tax bill. But if you are one of a growing number of people who have it as a ‘side-hustle’ and are making money on a regular basis, here’s what you need to know…
1 WHAT ARE THE CURRENT TAX RULES?
Everyone in the UK has a trading allowance of £1,000 a year, which means that you can make up to this amount selling goods or services, whether you are clearing out a garage, letting your house on Airbnb or making scarves to sell on Etsy, without having to fill out an annual tax return or paying tax on your profits. This is the same whether you are selling goods online, via marketplaces such as eBay or Vinted, Gumtree and Facebook, or in the ‘real world’, and these rules have been in place for several years.
2 WHAT’S CHANGED?
The way HM Revenue &Customs is gathering some of its information has changed. From the start of 2024, digital selling platforms such as eBay, Vinted and Etsy have to collect information about how much money their users are making, and to share it with the tax office. This will be checked against people’s tax returns to make sure that everyone’s paying the right amount of tax.
3 WHAT DOES IT MEAN?
This means that people who are making above the £1,000 trading limit could face tax bills or even fines if they have not been dec
