HMRC ruling on eBay/ Etsy etc

jon81uk

Mum1985 said:

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 

If you are selling your families own old possesions you are not earning anything and it does not affect anything to do with tax. Even if you are selling for friends, as long as you pass all the proceeds to them you are not earning money and trading as a business so it does not not count as earnings or have anything to do with allowances.

dogzarelife

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

Bertie129

dogzarelife said:

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

Short answer as far as I understand: yes, you do need to complete a self assessment, as technically you are self employed and bringing in more than £1000. But you won't owe any income tax. Possibly you might have to pay some NI contributions depending on how much you earn.

se2020

dogzarelife said:

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

You need to register as self-employed and submit a return if turnover is over £1000/year 

You can earn £12,570 a year profit with no tax to pay.

Over £12,570 you will start to pay a % of the profit as tax.
But you still keep the original £12,570 tax-free allowance so you will still gain more money. 


Not sure how you are getting child tax credits if you don't get working tax credit?
Is it your husband getting the CTC and passing it to you?

DullGreyGuy

dogzarelife said:

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

You are buying to sell and so that it trading

It doesn't matter how much you "make", if you sell more than £1,000 of stuff a year as a trader you have to register as a sole trader and complete your tax return.

If you total taxable income is within your personal allowance then there will be no taxes to pay and just a simple annual exercise to confirm that. 

dogzarelife

se2020 said:

dogzarelife said:

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

You need to register as self-employed and submit a return if turnover is over £1000/year 

You can earn £12,570 a year profit with no tax to pay.

Over £12,570 you will start to pay a % of the profit as tax.
But you still keep the original £12,570 tax-free allowance so you will still gain more money. 


Not sure how you are getting child tax credits if you don't get working tax credit?
Is it your husband getting the CTC and passing it to you?

My husband doesn’t qualify for working tax credit, the child tax credit is in joint names 

soolin

AS above buying to resell is definitely treated as business/commercial selling and should already be  reporting to HMRC. Also as above though even though you will need to declare yourself as a sole trader it doesn't necessarily mean you will have any liability to tax or NI- but you must declare yourself and submit self assessment tax returns. 

The new reporting system (and it is just a new system, not new tax rules) is designed to find the unregistered businesses, and whilst you are probably not their real intended target as I suspect they are going after bigger sellers , you may well find you may get a letter from HMRC, if not this year then at some point in the future.

As for it affecting other benefits, you may want to post that particular part of your question on the benefit board here :
Benefits & tax credits — MoneySavingExpert Forum

RFW

dogzarelife said:

I am a stay at home mum who sells on vinted, I source goods from charity shops, car boots etc and sell for a small profit. Whilst I make over £1000 a year I am no where near the £12,570 tax free allowance I am allowed to earn. Apart from child tax credit and child benefit I have no other income. I rely on my earnings from selling to survive. My questions are do I need to do a self assessment? Even though I’m earning below the allowance? And if it is the case that I do need to complete a self assessment will that have any impact on my other benefits? 

I live with my husband and two children, he works full time but has nothing to do with my Vinted account. This whole things has been branded the ‘side hustle’ with many people doing it on the side of their employment to make extra income but as this is my only income I’m unsure how I am affected. Would really appreciate some advice, it’s really been troubling me as I can’t imagine not having the extra bit of income I depend on. Thank you all for reading x 

As much as you can get good advice on here you'd be better getting independent advice from someone who can look at your personal situation, including benefits and income.

marbella

I have been selling on ebay for about 15 years.  A mixture of new items but mostly old/used clothing and items moved from one house to another.  So in previous years i will have gone over the 30 item and £1000 limit.  I know the rules are not new, as I have read, but I have ended all the items I had listed so my ebay account is blank.  If I opened a brand new account and started to list only used and old items which I can clear out, would this account be counted in the previous year or does it just start from Jan 1 2024.  

RFW

marbella said:

I have been selling on ebay for about 15 years.  A mixture of new items but mostly old/used clothing and items moved from one house to another.  So in previous years i will have gone over the 30 item and £1000 limit.  I know the rules are not new, as I have read, but I have ended all the items I had listed so my ebay account is blank.  If I opened a brand new account and started to list only used and old items which I can clear out, would this account be counted in the previous year or does it just start from Jan 1 2024.  

There is no £1000 limit, unless you are considered to be a business, ie where you would have purchased or made items to sell. The new reporting is over 30 items or over 2000 Euros (c, £1700). The £1000 is a figure of revenue above which you have to start declaring for tax purposes, if you are a trader.
The chances are if you keep opening new accounts you'll get someone thinking you have something to hide.

I can't really make out if you're trading or not. If you are trading then it's any 12 month period, although your tax year will be different. If you're not trading it makes no difference at all.