Martin Lewis explains new tax rule for anyone with an online 'side hustle'
5 January 2024, 16:02
The Money Saving Expert has spoken out regarding the new HMRC rule.
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Martin Lewis has explained the new tax rule surrounding online sellers, after confusion began when it was revealed that tax authorities would be collecting their details.
Earlier this week, it was announced that sellers on websites such as Depop and Vinted will have their information shared with HMRC and may be taxed on the goods they sell.
Quick the quell concerns, Martin took to X, formally known as Twitter, to confirm what the new rules will mean for users of the sites.
The Money Saving Expert stated: "Only sales over £1,700 or more than 30 items a year are reported" and "Unless you're 'trading' selling your old stuff isn't taxed."
Explaining the tax in more detail, the Money Saving Experts broke down what the new rule means for sellers.
They revealed that digital platforms must now share information with HMRC regarding how much the seller has made and how much income they have generated.
However, as Martin explained earlier, this will only affect people who sell 30 or more items a year, or have total earnings over the equivalent of €2,000 (currently around £1,700).
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As well as affecting sellers on websites such as Vinted, Depop, eBay and Etsy, people who rent their properties on Airbnb or provide services on food delivery apps such as Deliveroo and Uber, will have their information passed on to HMRC.
However Martin was also clear in pointing out that this isn't a new tax, but it does make it easier for HMRC to see how much people are earning online.
The Money Saving Experts suggest that if you think you may need to pay tax, you should file a self-assessment tax return by going to Gov.uk.
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