Caption: Martin Lewis advice for Etsy and Vinted sellers worried about new government taxes
Provider: shutterstock / PA
The money saving expert has told sellers he will ‘put their mind at rest’ after new rules obliging websites to share their details with the government were introduced.
But Mr Lewis has reassured those worried about their ‘side hustles’ selling their unwanted clothes that they won’t have a new tax forced upon them, and
He wrote on X: ‘In brief, there is no new tax. Unless you are “trading”, selling your old stuff isn’t taxed.
‘Only sales over £1,700 or more than 30 items a year are reported.’
Currently those earning more than £1,000 on top of their main income through sites such as OnlyFans should be declaring and paying tax on it.
HMRC was already allowed to ask online businesses what their sellers were earning but the government has now signed up to new rules via the Organisation for Economic Cooperation and Development (OECD), an international body, as part of worldwide efforts to reduce tax evasion.
The government says it hopes online platforms will now be treated more like normal businesses, with those using them subject to the same income tax rules as anyone else.
What do I need to do if I sell online?
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
Adam Jay, chief executive of Vinted – a second-hand clothes marketplace -told the BBC he did not think the new rules would affect many of the site’s sellers.
He added: ‘It’s actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information.’
Mr Jay said the firm would ‘actively reach out’ to those who do make larger sums to explain the changes.
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.’
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The money saving expert has reassured those with an online side hustle.