We’ve all seen the ads.
Bung your unwanted CDs or books in the post, free up some space and make a little cash.
Maybe flog your frocks on Vinted. All part of the good old new year reset and spring clean.
Earn a little extra here and there to give yourself a little cash boost, doesn’t hurt anyone does it? Plus there’s lots of good environmental messages around this – what could possibly go wrong?
Well…whilst you may be on increasingly familiar terms with the post office or the various couriers who drop off and collect whatever you are buying, selling or upcycling, you may soon be on just as familiar terms with the tax office. That’s because from January 1st, HMRC will require digital platforms to collect information on how much their users make – think, Etsy, Vinted, Ebay etc and also, Airbnb if you plan to make a quick buck there.
Plus, they may well be looking back through the archives, which means folk who may never even thought about declaring these little bits and bobs of income could soon be subject to some
pretty serious scrutiny.
That does raise the spectre of some fairly hefty and unexpected bills and even fines.
But how would they know?
Well, websites in countries that have signed up to rules set out by the Organisation for Economic Co-operation and Development (OECD), will collect information on UK-resident sellers and share that with HMRC.
How kind!
What sort of info?
Oh, just names, addresses, date of birth, national insurance numbers….potentially even bank details when it comes to the lettings side of things… Nothing major!
Now, there is a threshold for “hobbyists” so you don’t need to worry about the odd book, DVD, your latest bit of craftwork (or indeed your LP of Kraftwerk!).
That is currently £1000 and intentionally low so as to not be picking up the occasional seller but as things become clearer around this latest move we will let you know. Either way, for folk who earn a little more than the occasional bits and pieces, now would be a good time to pay more attention to your extra earrings.
You can read more on this from me here with regards to selling on Ebay. In the meantime, make sure you do account for your little extra bits and bobs so that if someone knocks at the door next year it is Postman Pat, not Taxman Tony.
