HMRC ruling on eBay/ Etsy etc

soolin

Pollycat said:

I don't know if anyone has already posted this but:
eBay, Etsy, Vinted and more to share your data with HMRC (moneysavingexpert.com)

It’s been posted a few times but it doesn’t seem to stop the questions. I think it might be useful to post this every time one of the threads about this goes over the page !

DullGreyGuy

Daws1985 said:

I'm really confused by the new rules around selling second hand clothes online. So I sell a lot of my kids clothes online via vinted when they have out grown them. I don't go anywhere near the £1000 threshold but have also seen things about limits of 30 sales. Does this mean if I do 30 sales but am well below the £1000 I will need to do a self assessment??

No new rules... new data to HMRC to enforce the old rules.

Grumpy_chap

Bertie129 said:

Checking the guidance, apparently I can even claim a fraction of my mortgage costs, energy bills, council tax etc as expenses since I'm running a business from home for the equivalent of a few days per year. It all seems a little absurd.

You may want to investigate the details of claiming tax allowances for home expenses for running a business so that you can be sure that any allowances so claimed are reasonable and proportionate.

Mum1985

I sell on vinted but don’t have any other employment or income apart from child tax credits. I sell unwanted items form
home, my children etc and I understand that if I sell over 30 items which I do Hmrc will be informed. My question is do I need to do anything with regards to the new rules? Thankyou 

Spoonie_Turtle

Mum1985 said:

I sell on vinted but don’t have any other employment or income apart from child tax credits. I sell unwanted items form
home, my children etc and I understand that if I sell over 30 items which I do Hmrc will be informed. My question is do I need to do anything with regards to the new rules? Thankyou 

As already stated in your other thread there are no new rules.

If you are selling your own personal unwanted items, it's all irrelevant.

If you are trading - acquiring items specifically to resell* - then you would have to register for self-assessment if your gross income from it exceeds £1,000 in a tax year.  You would not likely have to pay tax unless the profit took you over the personal allowance threshold.

*Do you keep the money from items you sell for friends/family or pass it on to them (obviously after fees and postage so you're not out of pocket)?  If the former then maybe trading.  If the latter, definitely not.


Edit: the selling for other family members came from this comment:
"I’m not sure if the new tax rules for selling online (vinted) apply to me, I know your allowed a certain amount of nontaxable income and I don’t currently have a job so have no income. I sell quite a lot on vinted, clearing out unwanted items, kids stuff etc and also sell for family members. I know they say if you sell over 30 items or £1000 it will be sent to Hmrc which I do (sell
over 30 items) but as I don’t have any income apart from child benefit and tax credits does this new tax rule effect me? Thank you "

Mum1985

Spoonie_Turtle said:

Mum1985 said:

I sell on vinted but don’t have any other employment or income apart from child tax credits. I sell unwanted items form
home, my children etc and I understand that if I sell over 30 items which I do Hmrc will be informed. My question is do I need to do anything with regards to the new rules? Thankyou 

As already stated in your other thread there are no new rules.

If you are selling your own personal unwanted items, it's all irrelevant.

If you are trading - acquiring items specifically to resell* - then you would have to register for self-assessment if your gross income from it exceeds £1,000 in a tax year.  You would not likely have to pay tax unless the profit took you over the personal allowance threshold.

*Do you keep the money from items you sell for friends/family or pass it on to them (obviously after fees and postage so you're not out of pocket)?  If the former then maybe trading.  If the latter, definitely not.


Edit: the selling for other family members came from this comment:
"I’m not sure if the new tax rules for selling online (vinted) apply to me, I know your allowed a certain amount of nontaxable income and I don’t currently have a job so have no income. I sell quite a lot on vinted, clearing out unwanted items, kids stuff etc and also sell for family members. I know they say if you sell over 30 items or £1000 it will be sent to Hmrc which I do (sell
over 30 items) but as I don’t have any income apart from child benefit and tax credits does this new tax rule effect me? Thank you "

If I sell the odd item for family I give them the money the item sells for obviously minus the postage cost. I do sell items that are of higher value (branded clothes etc) so may take me over £1000 a year but with no other income from employment only tax credits I’m assuming I don’t need to do anything? 

Spoonie_Turtle

Mum1985 said:

Spoonie_Turtle said:

Mum1985 said:

I sell on vinted but don’t have any other employment or income apart from child tax credits. I sell unwanted items form
home, my children etc and I understand that if I sell over 30 items which I do Hmrc will be informed. My question is do I need to do anything with regards to the new rules? Thankyou 

As already stated in your other thread there are no new rules.

If you are selling your own personal unwanted items, it's all irrelevant.

If you are trading - acquiring items specifically to resell* - then you would have to register for self-assessment if your gross income from it exceeds £1,000 in a tax year.  You would not likely have to pay tax unless the profit took you over the personal allowance threshold.

*Do you keep the money from items you sell for friends/family or pass it on to them (obviously after fees and postage so you're not out of pocket)?  If the former then maybe trading.  If the latter, definitely not.


Edit: the selling for other family members came from this comment:
"I’m not sure if the new tax rules for selling online (vinted) apply to me, I know your allowed a certain amount of nontaxable income and I don’t currently have a job so have no income. I sell quite a lot on vinted, clearing out unwanted items, kids stuff etc and also sell for family members. I know they say if you sell over 30 items or £1000 it will be sent to Hmrc which I do (sell
over 30 items) but as I don’t have any income apart from child benefit and tax credits does this new tax rule effect me? Thank you "

If I sell the odd item for family I give them the money the item sells for obviously minus the postage cost. I do sell items that are of higher value (branded clothes etc) so may take me over £1000 a year but with no other income from employment only tax credits I’m assuming I don’t need to do anything? 

You're not trading so no, no need to do anything

soolin

https://www.moneysavingexpert.com/news/2024/01/online-platforms-etsy-vinted-airbnb-report-hmrc/?utm_source=MSE_Newsletter&utm_medium=email&utm_term=09-Jan-24-4bcff18d2d4481c9e17-659dacb45680159cb900373d0d96eb69&source=CRM-MSETIP-4bcff18d2d4481c9e17&utm_campaign=nt-oneliners-one&utm_content=13&_ga=2.135089650.214201945.1704442768-1606248998.1648656556&_gl=1*iede54*_ga*MTYwNjI0ODk5OC4xNjQ4NjU2NTU2*_ga_X74CWQS9F0*MTcwNDk4MDE2My42NjQuMS4xNzA0OTk1MzMzLjUxLjAuMA..

Mum1985

Spoonie_Turtle said:

Mum1985 said:

Spoonie_Turtle said:

Mum1985 said:

I sell on vinted but don’t have any other employment or income apart from child tax credits. I sell unwanted items form
home, my children etc and I understand that if I sell over 30 items which I do Hmrc will be informed. My question is do I need to do anything with regards to the new rules? Thankyou 

As already stated in your other thread there are no new rules.

If you are selling your own personal unwanted items, it's all irrelevant.

If you are trading - acquiring items specifically to resell* - then you would have to register for self-assessment if your gross income from it exceeds £1,000 in a tax year.  You would not likely have to pay tax unless the profit took you over the personal allowance threshold.

*Do you keep the money from items you sell for friends/family or pass it on to them (obviously after fees and postage so you're not out of pocket)?  If the former then maybe trading.  If the latter, definitely not.


Edit: the selling for other family members came from this comment:
"I’m not sure if the new tax rules for selling online (vinted) apply to me, I know your allowed a certain amount of nontaxable income and I don’t currently have a job so have no income. I sell quite a lot on vinted, clearing out unwanted items, kids stuff etc and also sell for family members. I know they say if you sell over 30 items or £1000 it will be sent to Hmrc which I do (sell
over 30 items) but as I don’t have any income apart from child benefit and tax credits does this new tax rule effect me? Thank you "

If I sell the odd item for family I give them the money the item sells for obviously minus the postage cost. I do sell items that are of higher value (branded clothes etc) so may take me over £1000 a year but with no other income from employment only tax credits I’m assuming I don’t need to do anything? 

You're not trading so no, no need to do anything

So just to be double and triple sure the tax credits u received are non taxable and I have no income from employment so I can earn upto my allowance before having to worry about tax? Not that I will make anywhere near the allowance of £12,570 But it’s a nice dream 😆 also what if I live with my partner who is employed, do they take his earnings into account? As it’s just me that sells on vinted 

RFW

Mum1985 said:

So just to be double and triple sure the tax credits u received are non taxable and I have no income from employment so I can earn upto my allowance before having to worry about tax? Not that I will make anywhere near the allowance of £12,570 But it’s a nice dream 😆 also what if I live with my partner who is employed, do they take his earnings into account? As it’s just me that sells on vinted 

I see that several times it's been said that as you aren't trading and only selling personal products you don't need to do anything. HMRC have repeatedly said that there are no new rules.

If you are concerned about tax and anything related to your partner then contact CAB or some other free independent service, you can probably find one through your local library.

For others too, if you sell personal items then you can sell whatever you like without worrying about declaring the income. Only if you have bought or made something with the intention of selling it do you need to worry about declaring it for tax purposes.