People making a “side hustle” (such as selling second-hand clothes online or renting out a spare room on Airbnb) are amongst those who could end up paying tax on their earnings under a New Year tax clampdown.
On 1 January, new obligations were introduced meaning firms such as Vinted, Airbnb, Depop and eBay must collect and share details of transactions with the tax authorities.
HMRC were already able to request information from UK-based online operators, but there are now new rules that the UK has signed up to via the international body, the Organisation for Economic Cooperation and Development (OECD), as part of a global effort to clamp down on tax dodgers.
The new rules have caused some alarm amongst people who - for example - sell their unwanted clothes on platforms such as Vinted, but various articles/social media posts have now gone out (from HMRC, and other reputable sources) assuring those concerned that in fact:
1. No new taxes have been introduced, just more stringent reporting to uncover those who might be avoiding paying taxes.
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.
Comments