A money-saving expert has issued an urgent warning to people who sell on eBay and Vinted.
Many of us indulge in an extra side hustle to make a little bit of cash.
And in recent years, selling our unwanted bits and bobs online has been a hugely popular way to boost our income.
However, some news this week has struck fear into the hearts of eBay and Vinted sellers.
One money-saving expert has issued a stark warning to those who use reselling apps…
At the beginning of 2024, HMRC announced it would be requesting information from side-hustle apps like Vinted, eBay, and Airbnb.
The apps will now allow HMRC to see how much money people are making from their side hustles, helping it to see whether the income needs to be taxed.
Many people were left shocked and scared by the announcement, believing it could render their reselling businesses far less valuable.
One wrote on X, formerly Twitter: “The government should really focus on taxing the companies making millions and billions while avoiding tax than people using these sites making pennies compared to the likes on Amazon.”
Another agreed: “The government need to look at themselves. The PPE scandal and money given to friends. The public should be able to do what they want now, the sleazy Tories certainly do!”
Following the news, money-saving expert Martin Lewis explained the policy change – and issued a stark warning to eBay and Vinted users.
He wrote: “Please share. Many are worried after reports that Etsy, eBay, Vinted etc will start automatically passing sales info to HM Revenue. […] In brief 1. There is no new tax 2. Unless you’re ‘trading’ selling your old stuff isn’t taxed 3. Only sales over £1,700 or more than 30 items a year are reported.”
However, Lewis also issued a warning to those who use apps like eBay, Etsy, and Vinted to sell.
While the official limit on extra earnings is €2,000 (around £1700), this is the money earned before the app takes a cut.
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Reselling apps typically take around 3-8% of whatever an item sells for as an administration fee.
This means you don’t need to be taking home £1700 for HMRC to be interested in your earnings.
Lewis recommends that anyone earning over around £1,000 could be susceptible to tax, which is important to bear in mind.
He also emphasises the difference between reselling old goods and being a ‘trader’.
Lewis writes on his website: “If the earnings were solely from selling goods online, the key question is whether or not you’re considered to be ‘trading’.
“In a nutshell, if you make or buy goods with the intention of selling them, you’re probably a trader – and you therefore need to declare your income to HMRC through self-assessment.
“For example, if you’re buying furniture, decorating it and selling it on for more than you bought it for, this would be considered trading (unless it was a one-off). But if you cleared old stuff out of your attic and sold it, you wouldn’t be trading.”