MONEY Saving Expert founder Martin Lewis has put the minds of users of Vinted, eBay and other digital platforms at rest after it was revealed they may need to pay tax on their sales.
On January 1 digital platforms including Vinted, eBay, Airbnb and Amazon started collecting extra information about sellers, including how many sales they've made and the income they've generated.
This information is then shared with HM Revenue & Customs (HMRC).
This will allow tax authorities to detect and tackle tax evasion, while also levelling the playing field with how traditional businesses are treated for tax purposes, according to HMRC.
There’s been a lot of speculation online about new rules requiring online marketplaces to share certain details with us, and what this means for taxpayers. The reality? There are no changes to tax rules for people who use online marketplaces. More info 👇https://t.co/R3SM3JbFKS pic.twitter.com/uMvpfUpWIP
— HM Revenue & Customs (@HMRCgovuk) January 3, 2024
The change has been dubbed by some as the "side hustle tax" and has been met with great concern from online sellers that use platforms like Vinted, eBay and Depop.
One person on X (formerly Twitter) said: "Taxing people who sell their personal items on Vinted, Depop, etc is not only harming them financially by essentially taxing them twice, but it’s also a deterrent for being more sustainable.
"People aren’t going to bother with the faff, and it’ll lead to more waste in landfill."
Another person commented: "the uk government now taxing people making money on vinted/etsy/ebay is INSANE, you are selling items for a LOSS."
A third person added: "The new HMRC tax on 'side hustles' is just a stab at poor people.
"Emily selling her clothes on Vinted or John selling his lawnmower on eBay is somehow an issue for HMRC, but their mates in the government dodging millions in tax is acceptable."
It was even reported that some people had begun closing their Vinted accounts because they were so concerned about paying tax.
Martin Lewis puts online sellers' minds at rest about whether they have to pay 'side hustle tax'
But Martin Lewis on Thursday (January 4) posted on social media to put people's minds at rest about whether or not they will have to pay tax on their online sales.
Pls share. Many are worried after reports that Etsy, eBay, Vinted etc will start automatically passing sales info to HM Revenue. To set your mind at rest, best to read our full guide at https://t.co/2m20wnnmxI, but in brief 1. There is no new tax 2. Unless you're 'trading'…
— Martin Lewis (@MartinSLewis) January 4, 2024
Lewis, in a post on X, said: "Pls share. Many are worried after reports that Etsy, eBay, Vinted etc will start automatically passing sales info to HM Revenue.
"To set your mind at rest, best to read our full guide (a link to which can be found here)."
He continued, that "in brief" there were three main points people needed to know:
- There is no new tax
- Unless you're 'trading' selling your old stuff isn't taxed
- Only sales over c£1,700 or more than 30 items a year are reported
For more details about whether or not you will have to pay tax on your online sales, check out the Money Saving Expert guide in the link above.
Who is Martin Lewis?
