HMRC to receive more data from online sales platforms
Posted on 29 Jan 2024, by Jeremy Johnson
Selling your child’s old bicycle on eBay? You are not about to be taxed on that. There is no ‘new side hustle tax’.
There has been a lot of recent discussion about changes to HMRC’s data gathering powers in relation to online sales on platforms such as eBay and Vinted. However, despite some of the concerns being aired, there is no ‘new side hustle tax’.
Yes, HMRC is going to get more financial information from online platforms, and HMRC may share that with other tax authorities around the world. So, if you are TRADING (i.e. buying and selling and making profit) or if you are renting out a property, or getting paid to make food deliveries and you’ve not told HMRC, you may have a problem to sort out.
However, there is a £1,000 trading/property income allowance of course. The important thing is that the tax rules have not actually changed – it is the financial data that HMRC will now have available to catch rule breakers that will increase.
HMRC is not about to start taxing people who simply sell some of their old belongings on eBay. Indeed, even if those kinds of transactions were bought into the realm of tax, 99% would be at a loss.
So, if you’re having a near year clear out of old bicycles, a fondue set and a set of food platters that each have their own little wicker basket, knock yourself out – you shouldn’t be worried about it, and neither should HMRC.
If you are making more than £1,000 per year and you are concerned as to whether HMRC might consider your activity to be a trade, please get in touch. If it turns out you have been trading, you may need to make a disclosure to HMRC. We’ve helped hundreds of people make disclosures over the years and can make sure your affairs are up to date and you’re on the right track going forward.
While there is no ‘new’ tax, there is a New Year – so we hope you all have a happy one!
You can get in touch with our friendly and experienced team on: 0203 675 8122 or email jeremy.johnson@intaxltd.com, or call him on 07739 093 976.
