Hmrc - ebay/airbnb/vinted etc new rules - 1st Jan 2024

[413x]

From Ebay's website:

What you need to know

As a UK resident, when you sell over €2000 or surpass 30 sales transactions within a calendar year, eBay is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. Starting January 2025, the prior year's information will be annually reported to HMRC each January and a copy of the reported data will be provided to you. When prompted to do so, please provide eBay the requested tax identification information specific to you as a business or individual. UK digital sales reporting requirements do not change your existing tax obligations or create new tax obligations for you. To find out about your tax obligations, please reach out to HMRC or a tax advisor.
I suspect the frequency of sales data reporting will vary across platforms, but that seems to be what Ebay are doing.

Good find.

 

[413x]

A friend just got collared for renting out her flat. She used an agent for a while and I guess their files finally were digitised and uploaded to HMRC and her name was in there. They want £37k I would imagine a lot of people have been caught this way.

If you owe 37k you definitely can't plead ignorance on that one.

Well. You can.. But it's not gonna land

 

[413x]

You wouldn't actually have to pay tax on that £200 profit though, you just have to declare it.

Unless you have another job.

 

[413x]

Isn't there a £1000 non-tax allowance for those who do have a job?

There's a £1,000 on gross income threshold for self-assessment, but there's also a £1,000 threshold for net income (pure profit)

I Don't think so. If you make over 1000 you pay tax on ANY profit.

 

[413x]

It's clear to me since starting this thread.

If you go over 1k of sales you need records.
You them pay tax on profits.

Sell something for 1100 that cost 1000 where you are trading (ie buy a sealed lego set and sell it) you pay tax on that profit.

Sell something for 900 and it cost 100 pay no tax, no need to declare. Even if it is trading.