HMRC Updates for Christmas Side Hustles: Selling Unwanted Items Online

HMRC Update on Christmas Side Hustles

Source: Daily Star

New Tax Regulations for Online Sellers

As many Brits look to make extra cash by selling unwanted items online during the festive season, new rules from HMRC are set to impact those with online side hustles starting in January 2024. Here’s what you need to know:

• Sellers with over 30 transactions or earnings exceeding £1,700 annually must report their sales data to HMRC.
• Those who are simply selling personal belongings won't likely incur any tax liability.
• There is confusion surrounding this issue, leading many to stop listing their items on popular platforms like eBay, Etsy, and Vinted.

eBay’s Compliance with New Rules

Eve Williams, General Manager of eBay UK, reassured users that eBay is adhering to the new reporting rules effectively. She highlighted that:

• Misreporting has led to unnecessary worry among casual sellers.
• Approximately a quarter of UK households possess items worth over £500 that could be sold.

HMRC’s Clarification on Selling Goods

Angela MacDonald, HMRC’s Deputy CEO, emphasized key points:

• Only those regularly trading goods or selling for profit may incur tax implications.
• If casual sellers earn less than £1,000 from such sales in any tax year, they do not need to complete a Self Assessment.

For those who sell occasional unwanted items, it’s crucial not to be deterred, as these activities contribute positively to both household budgets and environmental sustainability.

Resources for Sellers

Sellers unsure about their tax responsibilities can check GOV.UK for guidance on Self Assessment registration and obligations relating to online sales.