HMRC is going to tax me on the money I make from selling bits & bobs on Vinted & eBay.

HMRC is going to tax me on the money I make from selling bits & bobs on Vinted & eBay.

Are they really? The answer for most people is going to be no, they’re not.

You’ve probably seen headlines (or clickbait on social media) with scary statements about HMRC wanting to tax you on the money you make clearing out your wardrobe or selling long discarded toys.

Legislation hasn’t changed, HMRC has always wanted to know if you are trading through online platforms such as eBay, Vinted, Airbnb, Deliveroo or Uber.

If you are earning more than the £1000 trading allowance per year, you may have had to pay tax on this depending on a few different factors. Below the £1000 trading allowance? You don’t need to report it to HMRC.

What has changed is that online selling platforms now have to provide information automatically to HMRC if you make over 30 sales and have total earnings over the equivalent of 2000 euros (currently about £1700).

If you are selling belongings you just don’t want anymore, you’re not trading your just being environmentally and financially savvy, and unlikely to be making more than the £1000 trading allowance anyway.

If on the other hand you are buying things specifically to resell, then you are trading – that’s a business and you need to register as self employed and complete a self-assessment to declare your income. If its less than £1000 you still won’t pay any tax on it, but as a business you should declare it.