Martin Lewis has issued a major warning to anyone selling items on eBay, Vinted and other similar platforms, as well as those renting their homes out on Airbnb.
The personal finance expert revealed on ITV that companies like eBay, Vinted, Airbnb and even Uber have had to collect sales data, and from January 31 they will have to share that data with HMRC.
The result, the Money Saving Expert said, was that sellers using the apps and websites “to make a profit” may find themselves paying more in tax after the end of the month.
“They will pass on your data [to HMRC] if you’re selling over 30 items or over about £1700 a year – but crucially the tax rules have not changed”, he said.
However, he carefully explained that not everyone selling on platforms like eBay would incur costs.
“Tax is only due for those who are traders. That is people who are deliberately buying stuff in order to sell it for a profit”, he said.
“Not Producer Alex who told me she cleared out a wardrobe and was worried. You cleared out your wardrobe, it’s your stuff, you didn’t buy it for profit – you’re absolutely fine”, he added.
Mr Lewis, who runs moneysavingexpert.com, said: “Now if you are trading – selling for profit – you can sell a maximum of £1,000 a year of stuff, including platform fees.
“Above that you, and have always been eligible to pay tax. But now they’re reporting it so be extra careful”.
The deadline passes on January 31 this week, meaning sellers only have two days left before companies begin reporting to HMRC.
