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

WRT how this might manifest, I suspect that all the relevent account holders will get a "you must submit an SA this year" letter for the tax year 23/4 (it's a bit late for 22/3). There will be some form of flag that means they expect you to submit something in the relevant section, so for reduced stress you can start getting your books in order now ahead of that letter and set up a Govt Gateway account.

SA online is very easy.
 
Firestar_3x said:
These changes will just promote more cash in hand transactions.

a limit of 1k on transactions seems silly low.
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For certain things yes and boot sales might see a bit of a resurgence among people trading things, but Brenda selling tat she's made with her cricut probably won't be able to transition away from online sales without the business grinding to a halt.
 
Zefan said:
I twit rwall

So really it's an additional allowance, essentially a tax cut for those that correctly declare it through self assessment as sole trader and turn over below the threshold?
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It’s a grey area for sole traders.. if the item was purchased via the company books or via your own salary that you pay yourself. kinda like declaring a business expense if you own the company.

I think it’s more for the people who ain’t self employed and have a side gig.

Just don’t go and buy yourself a gucci belt on your business credit card, gifting it yourself as a piece of work equipment then selling it on eBay for a profit.
 
CapitalOne said:
WRT how this might manifest, I suspect that all the relevent account holders will get a "you must submit an SA this year" letter for the tax year 23/4 (it's a bit late for 22/3). There will be some form of flag that means they expect you to submit something in the relevant section, so for reduced stress you can start getting your books in order now ahead of that letter and set up a Govt Gateway account.

SA online is very easy.
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Collecting doesn't start till now, and reporting doesn't start till 2025. Therefore the earliest would be for the 24/25 tax year.
 
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Yeah its designed to allow £1k income for people who do have small side hustles.
Its not new, its been around some time

Many of us used it for crypto mining. So mine upto £1k and its tax free.

Really HMRC are (rightly) asking people who are running side businesses buying/making/providing a service which is outside their normal main income to pay a bit of tax if they make a large gain.

You have always been able to ignore the allowance and do actual income and expenditure for your side hustle.
 
slinxy said:
It’s a grey area for sole traders.. if the item was purchased via the company books or via your own salary that you pay yourself. kinda like declaring a business expense if you own the company.

I think it’s more for the people who ain’t self employed and have a side gig.

Just don’t go and buy yourself a gucci belt on your business credit card, gifting it yourself as a piece of work equipment then selling it on eBay for a profit.
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Right, but wouldn't the side gig be something that should be reported as income anyway?
 
Quite telling at how badly the UK tax system is communicated.

To be clear - nothing has changed in terms of thresholds etc. with these new rules coming into affect. AFAIK it is just the communication channels/data reported to HMRC by companies that has changed.

If you've ever turned over more than £1000 in any kind of side hustle/self employment etc. You should have filled in a SA and reported that as income.
 
Zefan said:
Right, but wouldn't the side gig be something that should be reported as income anyway?
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It depends, the term side gig has taken up a whole new meaning now a days with the side gig economy.. what it should be called is a second job.

If I was to be paid 30 pounds for the taxi fare home and a bottle of wine to babysit someone every blue moon so that my niece and her hubby can visit friends, that could be considered as a side gig but I don't think the tax office would be interested.

but If I was charging people £250 per night and babysitting every night, then yes I would consider that as a second job.

Some people have turned what would be considered as chores/favours/one offs and made them into a business.

I have no issue with a granny who knitting baby jumpers and then selling them at the church fair, but if ma baker is running a sweatshop making 1000s of then and selling them on esty then it's a business. The issue is that some people don't have "common" sense in what's considered as a hobby and what's considered as a business, I'm into enough hobbies where I see people clearly running a side business in flipping items or producing items to sell to make a living.

EDIT: The only diffence is that known sites that people are using to run their side hustle need to report the infomation now to the tax office. I think this is a first step in clamping down to the point where the sites are to hold the tax from the sales of service/goods, and it's up to the individual to claim the withheld amount back.
 
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413x said:
I'm under on both actually.
I'll keep to under 1000 anyway as it's just easier. Genuinely thought it was profit though otherwise I wouldn't have even bothered doing it
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I mean, it should be for profit, otherwise its loads of extra paperwork for nothing.
 
413x said:
I think so too.

For most people it isn't worth it.
Unfortunately it probably means a lot of Stuff going to landfill.
For example people who don't make any profit but buy/sell a lot.

It doesn't take long to go over 1000 with high value stuff.
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People who buy and sell a lot (I.e clearly trading) but aren’t making a profit are just contributing to the UK economy being so crap so it’s no real loss for them to stop wasting their own and everyone else’s time with nonsense businesses like that.
 
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