Martin Lewis Urges Vinted And eBay Sellers To Do Urgent Check
The change could cost some people a lot of money...
If you’ve got a money-making side-hustle on-the-go, you may want to take heed of a warning issued by Martin Lewis.
The Money Saving Expert has issued advice for people who love selling their old stuff on sites like Vinted and eBay after some updated regulations sparked concern among a number of people.
Following the recent HMRC announcement that the tax rules around making extra money on various platforms including Vinted, eBay, Fiverr and Airbnb are being tightened up, side-hustlers have voiced their concern that they could fall foul of the new system and maybe even have the tax man knocking at their door.
As of the new year, selling platforms are now obligated to share details of how much money people are making online with HMRC so the tax office can check if people are paying the tax required on any money they’re making, allowing the department to launch investigations if it suspects anyone of tax avoidance.
An HMRC spokesperson said: “These new rules will support our work to help online sellers get their tax right first time. They will also help us detect any deliberate non-compliance, ensuring a level playing field for all taxpayers.”
While this has caused concern, Lewis and his Money Saving Expert team have got all the information you need to know and for many it's not likely to affect them at all.
He took to X to say he wanted to 'set your mind at rest' after seeing so many people worried in the wake of the HMRC announcement.
Lewis urged people to check how much they were actually making from the sites, and if it was below £1,700 or there were fewer than 30 items being sold then actually, nothing was really going to change for you.
His site explained that you should check if you need to pay tax, but that most were likely not going to have to fork over any extra money to HMRC.
In effect, the change is that HMRC will now be able to see sellers information for these online trading companies automatically, rather than having to specifically request it.
However, your details only get passed on automatically if you're selling 30 or more items a year or make over £1,724 from selling your stuff.
In the UK, the Trading Allowance means people can earn up to £1,000 a year outside their normal job without having to pay tax, however once you pass that threshold you’re required to submit a self-assessment tax return and pay what is owed.
Adam Jay, chief executive of Vinted, told the BBC that he didn’t think the new rules would impact many of the platform’s current users.
“It's actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information.
“It's only those people who are making a profit from selling second-hand items that might be eligible for tax and then it's about their own personal tax situation and what tax would ultimately be due to HMRC.
“We'll be actively reaching out to those sellers explaining what the new requirements are and why they exist.”
So if you’re just selling some old clothes on Vinted, rather than making a decent living out of it, it’s not likely to fall under the definition of ‘trading' so you can carry on your merry way!
If you’re on the hunt for a side hustle to earn you a bit of extra cash in 2024, check out our guide to the Best Side Hustles for Students!
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