Side hustle tax implications...

Clearing out your wardrobe or selling handmade items online can be a great way to earn extra cash, but did you know HMRC is now receiving more seller data from platforms like Vinted, eBay and Etsy? This makes it even more important to understand your tax responsibilities.

Key points for online sellers:

If you’re just selling personal items you no longer need, and you aren’t buying to resell for profit, you normally won’t owe tax.

There’s a £1,000 trading allowance. If your total sales from online selling are under this in a tax year, you usually don’t need to report it (unless you have other self employed income).

If sales exceeds £1,000, and you’re trading with the intention to make a profit, you will need to register for Self Assessment and pay tax on your profits.

Platforms are now required to report seller activity to HMRC.

Our tips:

• Keep good records of all sales, fees and costs.

• Add up all earnings across platforms.

• The £1,000 allowance isn’t per site.

If in doubt, get advice sooner rather than later.  It really can save stress, penalties and cost.

Need help with online selling taxes or Self Assessment? 

Get in touch!  We’re here to help.