By Riri in money — Jan 12, 2025

Understanding New Tax Regulations for Side Hustles on eBay and Vinted: Reporting Period Confusion Explained

New Tax Checks on Side Hustles: Risks and Confusion

Overview of New Reporting Requirements

HM Revenue & Customs (HMRC) is enhancing scrutiny on side hustle earnings by mandating online platforms, including eBay and Vinted, to report user income. This new requirement is set to take effect for the 2024 tax year.

Challenges with Reporting Periods

Discrepancy between the UK tax year (April to April) and the OECD’s calendar year (January to December) creates confusion.
Casual sellers may mistakenly report inaccurate income figures to HMRC, as the data pertains to the entire calendar year.
Only earnings from January to March 2024 are relevant for tax assessments due this month.

Implications for Sellers

Anyone earning over £1,700 or making 30 transactions annually will have their income reported to HMRC.
While not a new tax, this change could surprise individuals unaware of existing declaration requirements.
The first £1,000 of income from occasional trading remains tax-free under the UK’s trading allowance.

Advice for Sellers

Monitor Dates: Identify which quarter applies to your self-assessment period (specifically January to March for 2024).
Understand Allowances: Remember that income below £1,000 is generally tax-free.
Seek Guidance: Obtain assistance from HMRC or tax professionals if uncertain—to avoid costly mistakes.

Conclusion

With these new reporting measures, HMRC seeks to minimize non-compliance. However, until sellers fully grasp how to interpret their income data from platforms like eBay and Vinted, the risk of unexpected complications remains high.