We’re here to reassure you and break down how this will (and won’t) affect you.
Firstly, do you earn over £1,000 per tax year by using platforms such as Vinted, Etsy, Depop, eBay, Amazon, Uber Eats, or Airbnb?
If the answer is ‘no’, then there is nothing you need to worry about.
In the UK, individuals can earn up to £1,000 per year from a hobby (or ‘side hustle’) before they need to register as self-employed with HMRC, and fill in a self-assessment tax return.
There are actually no new rules for online sellers when it comes to HMRC, this £1,000 Trading Allowance has been in place for a while, there is just a change in the way that it’s reported via these digital platforms.
Airbnb does have its own set of rules however (including an allowance of up to £7,500 if you’re under the Rent a Room scheme), make sure to about them here: https://www.whyfield.co.uk/news-careers/making-airbnb-less-taxing/
From January 2024, HMRC will be collecting data from these sites directly.
If you do, or you’re planning to, earn over £1,000 this year by selling on these platforms, here’s what you need to do:
Steps 3, 4, and 5 are where it can become a little more complex, so seeking the help of an accountant or bookkeeper (like us!) is always a good idea. We can help guide you through and ensure you’re doing all the right things, so you don’t end up with a surprise HMRC tax bill on your doormat!
If you have any questions, feel free to pop them in the comments of our latest post, message us, or email us firstname.lastname@example.org
Again, if you are planning on selling a few of your old jumpers or dresses on Vinted, this does not apply to you! This ONLY applies to those that have, or are planning to, sell over £1,000 per year on these sites.