Selling on Vinted, Etsy or eBay? Here's what you need to know about paying tax
- Written by Richard Tyler, Senior Professional Tutor in Accounting and Finance, Liverpool Hope University
If you’ve sold clothes on Vinted or Depop, or something you’ve made on Etsy, you might have been alarmed or confused by information recently published[1] by HMRC on paying taxes when selling items online.
It includes the information that from January 1 2024, online sales platforms enabling sales of goods or services – such as eBay, Depop and Vinted – will be required to collect information on the income generated by sellers on those platforms, and pass on this information to HMRC by January 2025.
This is not a new tax. The rules on what counts as taxable income haven’t changed. But it does mean that HMRC will have more information on cases when people selling online should pay tax and don’t. And because this information will also be passed to the person selling, it will be useful information if you need to fill out a self-assessment tax return.
References
- ^ information recently published (www.gov.uk)
- ^ This article is part of Quarter Life (theconversation.com)
- ^ Four ways to tell the designer fashion items worth investing in from the ones that aren’t (theconversation.com)
- ^ Is someone using your pictures to catfish? Your rights when it comes to fake profiles and social media stalking (theconversation.com)
- ^ How to make your clothes last longer – it’s good for your bank account and the environment too (theconversation.com)
- ^ trade allowance (www.gov.uk)
- ^ self assessment form (www.gov.uk)
- ^ capital gains tax (www.gov.uk)
- ^ HMRC guidelines (www.gov.uk)
- ^ online tool (www.gov.uk)
- ^ significant media coverage (www.independent.co.uk)
- ^ complex relationship (www.sciencedirect.com)
