YOU may need to tell HMRC if you receive income through an online marketplace or social media, even if you do not need to pay tax on it. This could be whether it’s your main source of income or an additional source — sometimes called a ‘side hustle’.

Income could be money, gifts or services you have received from:

• selling personal possessions
• selling goods
• providing a service
• creating online content
• renting out land or property

Selling personal possessions

Personal possessions are items that belong to you for your own use. You may have bought them or received them as a gift.

Personal possessions include your:

clothing
ornaments
kitchen equipment
table and chairs
jewellery
computers and phones

If you’re only selling personal possessions you’ll probably not have to pay Income Tax on these. However, depending on the items you sell and how much you sell them for, you may need to pay Capital Gains Tax. This applies to selling personal possessions where the item is worth more than £6,000.

This tool will help you work out whether you need to tell HMRC about this income.
The £6,000 limit for Capital Gains Tax that applies to a single personal possession also applies to the total value of items which form a set, for example:

chess pieces
books by the same author or on the same subject
matching ornaments, such as vases or statuettes

Example — cash in the attic

You’re clearing out your attic and decide to sell your unwanted items using an online marketplace. It’s unlikely that you’ll need to tell HMRC about this income or pay any tax, as long as none of the items are worth more than £6,000.

Example — selling a personal possession for profit

You’re renovating your home and decide to sell a picture you own using an online marketplace. You bought it 5 years ago for £1,600 and you sell it at the current market value of £8,000. You may need to tell HMRC about this income, as you’ve made a gain of £6,400.

Selling goods

You’re probably trading if you sell goods that you have:

• bought intending to sell for a profit
• made, including items you make for a hobby

Example — upcycling and selling

You upcycle second hand furniture as a hobby with the intention to resell. You sell them through an online marketplace.

You have received income through an online platform from selling goods and you may need to tell HMRC about this income.

Example — importing items to sell

You import cameras and accessories online from the far east and sell them on an online marketplace, making a profit.

You have received income through an online platform from selling goods and you may need to tell HMRC about this income.

Example — reselling clothes and other items

After making some money from selling unwanted clothes, you begin to buy items from car boot sales and charity shops which you then sell through online marketplaces, aiming to sell for more than you paid for them. This is something you do consistently.

You have received income through an online platform from selling goods and you may need to tell HMRC about this income.

Providing a service

Services are things you do for others, for example:

• gardening and repairs
• dog walking
• taxi driving
• delivering food
• tutoring
• babysitting and nannying
• hiring out equipment

Example — babysitting and nannying

You provide nannying and babysitting services. You use an online platform to create a profile and advertise and sell your services.

You have received income through an online platform from providing a service and you may need to tell HMRC about this income.

Creating online content

Online content could be:

• making online videos
• producing podcasts
• social media influencing

Income from creating online content includes gifts and services you receive from promoting products online.

Example — social media influencing

You are a content creator and influencer with a social media channel where you review beauty products. You receive advertising income on your videos. You also receive gifts from the companies you review.

You may need to tell HMRC about this income.

Renting out land or property

Land or property could be:

• a room in your main home, including as a bed and breakfast
• your main home
• a property that is not your main home
• land, for example your driveway

Example — renting out your spare room

You rent out your spare room for short-term lets using an online platform. You receive regular payments from the online platform after your guests have checked in.

You have received rental income from an online platform and you may need to tell HMRC about this income.

Check if you need to tell HMRC about your income

You can use this tool to check if you need to tell us about income you receive from using online platforms.

Before you start

You’ll need some information about your income. This could include:

• how much you received, or expect to receive during the tax year
• if you share this income with someone else
• if you have other sources of income you need to declare

When you’re telling HMRC about your income, you’ll need to report the income for the tax year, which is from 6 April to 5 April the following year.

Some online platforms will show your income for the calendar year, from 1 January to 31 December. If this is the case you’ll need to work out the income for the tax year before using the tool.

We’ll use this information to work out if you need to tell us about this income.

Click below for more details.

https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms?utm_source=t.co_hmrcgovuk&utm_medium=social&utm_campaign=onlinesellers&utm_content=4dec