Hi,
If you aren’t trading and just occasionally sell unwanted items online nothing has changed:
Please see our 4 December 2024 press release:
No tax changes for online sellers | HM Revenue & Customs (HMRC)
We're asking online platforms to share information with us to ensure businesses operating via these platforms pay the correct amount of tax, and do not have an unfair tax advantage over high street and other traditional businesses.
This is an internationally agreed set of rules that have been implemented in the UK. The data provided by platform operators will be broken down by quarters helping sellers make use of the data.
Tax rules regarding selling of goods and services are unchanged. The same rules apply whether the goods or services are sold in person or through an online platform.
We’ve published specific guidance for those selling goods and services online:
Check if you need to tell HMRC about your income from online platforms - GOV.UK
Selling goods or services on a digital platform - GOV.UK
Whether income is taxable will depend upon the source and the specific charging provisions within the law. If the individual is just selling some unwanted items that have been lying around their home, it is unlikely that they will have to pay tax. In order to be liable to pay tax on the goods or services they sell, they either have to be trading or make a capital gain.
Depending on the items they sell and how much they sell them for, theymay need to pay Capital Gains Tax. This applies to selling personal possessions where the item is worth more than £6,000.
An individual would have to consider whether the activities were sufficiently organised to be a trade. Where an individual is selling personal belongings, such as the contents of a loft or garage, it is unlikely to be trading income for tax purposes. However, someone is likely to be trading when they buy goods for resale or make goods with the intention of selling them for a profit.
Whether a trade is being conducted is ultimately a question of fact and individual circumstances should be considered and specialist advice sought if necessary.
If the income from trading is above £1,000, an individual will need to register for Self Assessment and declare this income in a tax return.
Most individuals have a personal allowance for the year of £12,570 which is the amount they can earn before they reach the threshold for paying any income tax. If the individual has no other income against which their personal allowances have been set, they can set unused personal allowances against this income to reduce the tax due.
Information on who needs to complete a return can be found online:
Self Assessment tax returns: Who must send a tax return - GOV.UK (www.gov.uk) Customers can use also our online checking tool at this link, to quickly assess whether they will need to complete a tax return.
Thank you.