HMRC is reaching out to eBay and Vinted sellers as the January deadline for tax reporting approaches
Since the start of this year, new rules mean that these platforms have to report certain details about sellers to HMRC. They want to make sure everyone who should be paying tax is doing so.
When your details are reported, the platform has to let you know. So, mark January 31 on your calendar! That’s the deadline for sellers to report their info.
HMRC says this info is to help you track your earnings. It can also help if you need to report your income or file a tax return. But remember, these reports don’t replace your usual business records.
The report will show your total earnings for the year, minus any fees or taxes taken out. It’ll break it down by quarters, so you can see how much you made over time. Just keep in mind the taxes deducted, as you might be able to offset those against what you owe.
If you’ve made over 30 sales in a year or earned more than £1,700, HMRC will reach out to you. But don’t panic; it doesn’t automatically mean you owe tax.
You only need to pay tax if you’re trading or making a profit. Selling personal items, like stuff from your loft or garage, usually doesn’t count. But if you’re buying or making things to sell for profit, that’s a different story.
Personal items are things you bought for yourself or received as gifts. Think clothing, kitchen gadgets, or even old phones. But if you bought items to flip them for cash, you might be seen as trading and could owe income tax.
If you’re unsure whether you need to report your income, check out the gov.uk website for guidance. It’s always better to be safe than sorry!
