If you’re just selling unwanted items from your home, HMRC says you’re unlikely to be liable to pay tax – but you would be expected to if you’re selling items with the intention of making profit
HMRC has issued an urgent reminder to anyone selling unwanted items online on second-hand selling sites such as eBay, Depop and Vinted.
Online platforms must start sharing their sales data with HMRC for tax purposes from January 2025. Previously, HMRC had to request this information. Everyone has a trading allowance of £1,000 which is how much you’re allowed to earn outside of your regular job before you become liable to pay tax on your extra income.
But if you’re just selling unwanted items from your home, HMRC says it’s unlikely you’ll have to pay tax. You would be expected to pay tax if you’re selling items with the intention of making profit – this means you’re classed as trading – and you go over your trading allowance. Tax would be due on the income earned over the trading allowance.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self-assessment.”
Those who sold at least thirty items or earned roughly £1,700 (equivalent to €2,000) or provided a paid-for service, on a website or app in 2024 will be contacted to say their sales data and some personal information will be sent to HMRC. But this does not definitely mean you owe tax. Again, you’d only have to pay tax if you’re considered to be trading.
You can check GOV.UK for guidance. If you do need to pay tax, you’ll have to complete a self-assessment form. You can find out if you need to register for self-assessment on GOV.UK. If you do need to register, you can do so online or by calling the self-assessment helpline on 0300 200 3310.
If you already report your additional income to HMRC, then the new rules won’t affect you as you’re already sharing your extra earnings. It will affect people who are not doing this or under-reporting their earnings. Other reasons why you may need to fill out a self-assessment form include
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Your income from renting out property was more than £2,500
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You earned more than £2,500 in untaxed income, for example from tips or commission
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Your income from savings or investments was £10,000 or more before tax
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You need to pay Capital Gains Tax on profits from selling things like shares or a second home
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You’re a director of a company (unless it was a non-profit organisation)
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Your income, or that of your partner, was over £60,000 and you’re claiming Child Benefit
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You have income from abroad you need to pay tax on
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Your taxable income was over £100,000
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You’re a trustee of a trust or registered pension scheme
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Your state pension was more than your personal allowance, and your only source of income
