Selling things online is easy and fun. Clearing out your wardrobe or selling stuff you no longer need is a great way to make extra cash. But does HMRC (Her Majesty’s Revenue and Customs) need to know about your online sales?
When selling something online, use websites like eBay, Vinted, or Airbnb. These platforms allow people to sell various things, such as clothes, books, or services like renting a holiday home or delivering food.
For many people, selling items they no longer need is casual. Maybe you’re selling a dress you’ve outgrown or your old toys. This isn’t the same as running a business or making money regularly. So, the big question is: does HMRC need to know about it?
What Are the New Rules for Selling Online?
In January 2024, new rules were introduced. But don’t worry! These rules do not mean you’ll be taxed on everything you sell. Here’s what changed:
Digital platforms (like eBay, Etsy, or Airbnb) must share your sales data with HMRC. They will report your sales if you meet certain conditions. For example, if you sell more than 30 items or make about £1,700 (around €2,000) in a year, the platform will notify HMRC about your sales.
However, this doesn’t mean you automatically owe tax. It simply means HMRC will have access to the data about what you’re selling.
When Do You Need to Tell HMRC?
If you sell online, there are some cases when you need to tell HMRC. But don’t worry, it’s not as complicated as it sounds. Here’s a simple breakdown:
The Trading Allowance
HMRC allows you to earn up to £1,000 a year from selling things online without telling them. This is called the Trading Allowance.
You don’t have to report anything to HMRC if you make less than £1,000 from selling things. For example, you’re safe if you sell a few unwanted items and don’t make much money!
