Thousands of people who use selling sites such as eBay or Vinted to make extra money will soon have a simpler way to declare their earnings.
Under current rules, you need to fill a self-assessment tax form when you earn over £1,000 in extra income per tax year – but this threshold will reportedly be raised to £3,000. If you make under £3,000, there will be a new and simple online form that you’ll need to fill in to declare your earnings instead. This will come into force by 2029, according to reports.
It is estimated 300,000 will no longer have to fill in a self-assessment form as a result of the changes. However, the amount of tax you need to pay won’t change – only the way you report your earnings to HMRC. If you’re just selling unwanted items from your home, HMRC guidance online states that it is unlikely you’ll need to pay tax on these sales.
You would be expected to pay tax if you’re selling items with the intention of making profit on them – this means you’re classed as trading – and you make more than £1,000 in one tax year. You would pay tax on the income earned over this trading allowance. Tax Minister James Murray told The Sun: “From selling old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.
“Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle. We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.“
Online platforms such as eBay and Vinted must now share their sales data with HMRC for tax purposes. Previously, HMRC had to request this information. 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 again, this does not definitely mean you owe tax – you’d only have to pay tax if you’re considered to be trading. You can check GOV.UK for guidance. There are many other reasons why you may need to fill out a self-assessment form, which include:
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