Money talk

Sue’s Guide To Online Trading And Paying Tax

If you make money through the likes of eBay, Etsy, Vinted or Airbnb, online sites like these must now keep records of much you earn.

This is to ensure that people who owe tax on any extra income pay it, especially if they’re trading on sites like eBay.

Since January 1, companies (like those listed above) must keep records showing how many sales you make and how much you earn each year. And from January 31, 2025, they must share details with HM Revenue & Customs (HMRC).

However, records won’t be passed to HMRC on smaller sellers, who make less than 30 transactions a year, or earn around £1700 a year. On eBay, if you’re selling off your own clothes, the kids’ old toys or second-hand furniture from your home, you shouldn’t be classed as a trader.

However, making or buying goods with the aim of selling them on – for example, scouring charity shops for items to sell via eBay to make money – means you’re likely to be classed as a trader.

When it comes to making money from trading or a small ‘side hustle’, like renting out your drive, upcycling furniture or doing a spot of gardening, you can earn up to £1000 a year tax-free. This is known as your Trading Allowance and you don’t have to declare this money to HMRC. Once you earn over £1000 from your side hustle, you could be liable for tax, depending on any other income you earn over the course of the tax year.

As tax rules can be complicated, if you’re in any doubt about whether you may owe extra tax, it might be worth getting in touch with HMRC on 0300 200 3300.

3 WAYS TO SAVE

◆ Frozen and burst pipes can cause thousands of pounds of damage in your home, according to Aviva insurance.

Insulate pipes with lagging, available from your local DIY store.

◆ The ideal fridge temperature is 0-5°C according to Love Food Hate Waste. The average UK fridge is at least 2 °C too warm, which means food may go off before its “use by” date.

◆ If you’re s