New ‘side hustle’ tax rules have caused some concern for those selling items online, with many people unsure whether this meant additional tax obligations.
On the 1st of January 2024, digital platforms, such as Etsy, Vinted, eBay, Deliveroo and Uber, started collecting information about the people who make money through their sites to then send on to HMRC and the individual on or before the following 31st January (for example, Jan 2025 for the period 1st Jan 2024 to 31st December 2024).
HMRC has now confirmed that there are no changes to tax rules for people selling their unwanted possessions online, so if you’re selling off items like your old clothes or children’s toys, you have nothing to worry about.
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You may however need to register for self-assessment and pay tax if you are:
- buying goods for resale, or making goods with the intention of selling them for a profit
- offering a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
- AND generating a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said, “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.
“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment.”
Take a look at our New ‘side hustle’ tax rules explained page for more information on this.
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