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Taxman may come looking for people who make money from sites like Vinted, Ebay and Etsy

Business / Tue 2nd Jan 2024 at 10:42am

PEOPLE who make money from online “side hustle” activities such as Vinted or Etsy will find the tax net tightening this year reports the BBC.

From 1 January firms including Vinted, Airbnb, and eBay are obliged to collect and share details of such transactions with the tax authorities.

That will allow HMRC to home in on anyone who should be declaring the extra income but isn’t.

While HMRC was already able to request information from UK-based online operators, from the start of this year there are new rules that the UK has signed up to via the international body, the Organisation for Economic Cooperation and Development (OECD), as part of a global effort to clamp down on tax dodgers.

The new rules require digital platforms to report the income sellers are getting through their site routinely. It will apply to sales of goods such as things that have been handcrafted and second hand clothes, but also services including taxi hire, food delivery, freelance work and short-term accommodation lets or even renting out your driveway for parking.

The information will be shared between countries that have signed up to the OECD tax rules.

The government said the new rules would help it “bear down on tax evasion”, as sellers on digital platforms would now be treated more like traditional businesses.

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.”

Firms’ first obligation to report information to HMRC will be at the end of January 2025 and will include information such as the tax ID, bank account details, and the value and volume of transactions for sellers whose activity is of significant enough size. 

What do I need to do?

  • Online sellers already paying tax do not need to alter what they are already doing
  • Individuals have a £1,000 tax-free allowance for money made through property
  • There is also a £1,000 allowance for “trading” income – for example, if you offer tutoring or gardening, or if you are selling new or second-hand items online
  • People earning below those thresholds may not have to fill in a tax return, but should keep records in case they are asked for them

Click below for more details.

https://www.bbc.co.uk/news/business-67855872

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8 Comments for Taxman may come looking for people who make money from sites like Vinted, Ebay and Etsy:

Luke Burton
2024-01-02 10:46:31

You'd think the OECD with the might of all of their respective members find bigger fish to fry... Or perhaps work on policies to close loopholes that allow tax avoidance schemes to be legal.

Mr Grumpy
2024-01-02 16:01:22

Luke Burton.....It's far easier to pursue the little guy trying to make extra cash to feed his/her family than it is to pursue the rich & powerful for the millions owed in tax evasion !!

Luke Burton
2024-01-02 17:14:54

Too right!

David morton
2024-01-03 05:32:25

Modern day Robin hoods, take from the poor to give to the migrants.

David Forman
2024-01-03 08:50:25

Taking from the poor to give tax cuts to the rich.

Mandy
2024-01-03 17:59:01

I sell my belongings on Vinted to pay for my mortgage which this awful money grabbing government have made ridiculous! I no doubt paid tax on my items so why should I pay tax again. I also hold down a job so I don’t see why I should pay This country is run by idiots

Gary Scott
2024-01-03 20:46:00

If your selling 2nd hand stuff why do you need to pay more tax, it's already been taxed, and why not stop all the rich people putting there I'll gotten gains in off shore banks,caymen islands Isle of man, the political class never stop themselves from robbing the people of there taxes ,David the coward Cameron was supposed to sort that but he ran off when the country left the eu, so it was lost in the long grass, absolutely disgusting, stop stealing and wasting our money

David
2024-01-03 21:16:00

Mandy - If you are selling your stuff on Vinted, then you have nothing to worry about - If, however, you are buying stuff to sell it regularly on Vinted, then that is 'trading' for profit and should be declared. There are people who earn £1,000's every night renting flats in London. They have the money sent abroad and don't pay a penny in tax - These are the people who should be watching their backs!! ---- This is a rare good news story from this government ---- I guess HMRC will be catching up with quite a few people who think that tax is something that only poor fools pay.

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