Self assessment

dogzarelife

Following the new rules regarding online selling I need to complete a self assessment, whilst I make over £1000 it’s nowhere near the £12,570 personal allowance. I have no other income apart from child tax credits and child benefit. Will completing the self assessment impact my benefits? Thanks for reading 😊

DE_612183

There are no new rules.

If you are on benefits you should be declaring your income anyway.

What other incone have you got?

dogzarelife

DE_612183 said:

There are no new rules.

If you are on benefits you should be declaring your income anyway.

What other incone have you got?

I started selling on vinted purely just clearing out old clothes, kids items etc then a few months ago I started to look out for items I could sell for a small profit. I’m talking £5-£20 profit not hundreds. I have no income from employment, only child benefit and child tax credit which is joint between myself and my husband. 

Brie

Presumably it could have an impact if your benefits are income related.  

dogzarelife

Brie said:

Presumably it could have an impact if your benefits are income related.  

Even if I’m still under the allowance for tax free earnings? 

Spoonie_Turtle

dogzarelife said:

Brie said:

Presumably it could have an impact if your benefits are income related.  

Even if I’m still under the allowance for tax free earnings? 

As far as I understand, for Tax Credits you don't have to update them within the year if your income changes by less than £2500, but you will have to at the end of the year when they finalise the award.  So for you that's profit from the stuff you sourced specifically to (re)sell, not the unwanted personal possessions/kids' clothing etc.

For UC, whenever you're told to claim that instead of TC, you will have to declare any profit every month.

maxmycardagain

dogzarelife said:

DE_612183 said:

There are no new rules.

If you are on benefits you should be declaring your income anyway.

What other incone have you got?

I started selling on vinted purely just clearing out old clothes, kids items etc then a few months ago I started to look out for items I could sell for a small profit. I’m talking £5-£20 profit not hundreds. I have no income from employment, only child benefit and child tax credit which is joint between myself and my husband. 

do you sell excess family items or buy stock to sell?

the latter is what produses any profit not the selling of your own clothing, if thats the case you are not a business

sheramber

Whether you pay tax or not is not relevant to tax credits.

Your payments are calculated on your total household income.

This figure is checked after the end of the tax year with what household income your payments were calculated on.

If your income changes by more than £2500 your payments will reworked and any under /over payment will be calculated.

If your household income for the year is more than £2500  than the figure used to calculate your payments you will have been overpaid.

Tax Credits do check the figures submitted on your self assessment return, so if your profit is more than £2500 you should notify tax credits to reduce any overpayment which you would have to pay back.