Martin Lewis issues warning over HMRC rule but says 'most' shouldn't worry
Martin Lewis has issued a warning over a HMRC charge - but insisted "most shouldn't worry". The BBC Sounds podcast host and ITV regular spoke out via Twitter, now X, in the shadow of the self assessment tax return deadline on January 31.
"Why most SHOULDN’T worry that eBay, Etsy, AirBnB etc must now share your sales data with HMRC, a speedy briefing…," Mr Lewis said. Twitter/X user Brian replied: "Shame Starbucks, Amazon, Costa etc... still aren't paying their fair share of taxes but the labour government is gunning for the little guy making a bit of money on the side to pay for the increase in energy bills, food prices and taxation that the labour government are bringing."
"If you are a trader, remember to expense every reasonable cost against your ebay business. Including things like use of home as office, computer, broadband and phone costs and visiting trade shows etc. If HMRC want to tax you like a business, then you can have costs like one," a second typed.
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And a third said: "Sound advice as ever @MartinSLewis - shame the £1k limit isn’t higher as it might encourage more entrepreneurial spirit across the UK." Sites likes eBay, Vinted and Depop will now routinely inform HMRC how much people are earning from selling via their sites.
"From 1 January this year, [sites] will give HMRC greater visibility of the money people are receiving," says Sarah Hollowell, director of Tax & Trustee Services at Killik & Co. "HMRC will receive the first information returns in January 2025 which gives sellers time to find out whether they need to report anything and to get their affairs in order."
If you've not sold a personal possession or groups of personal possessions totalling £6,000 or more, HMRC's website says you do not need to declare it. If you're selling things you've bought deliberately in order to make a profit, the rules change – so take note! – and you're allowed up to £1,000 per year tax free before possibly needing to pay tax.
"Upcycling items or creating new ones to sell could also mean you have a reporting obligation," Hollowell adds. "This is because you are then seen as having a trade (or a business) so could potentially be subject to income tax. In these cases you're allowed up to £1,000 per year before you need to let HMRC know."