Sellers on eBay and Vinted have been issued an urgent HMRC warning that requires them to submit a tax return within a two-week window. This tax return has been given out specifically to sellers who earned over £1,000 in the tax year of 2023-2024.
To help you fully understand the implications of this, we’ve put together this article that will guide you on whether you’re included and how to respond.
Who’s liable?
As previously mentioned, those earning over £1,000 from selling are the main demographic, whether it be through the named platforms or some other form of side hustle.
If you’re manufacturing the items yourself, such as through knitting or baking, you may not be included. You’re technically operating a small business, which requires materials and other costs to function, and may therefore be exempt from the tax.
Don’t just assume you’re safe, however. Filling out a self-assessment tax return is the best way to clear any doubts. If you need help completing this or any other documents, you can find services for accountants Bath online, such as chippendaleandclark.com/accountants-near-me/bath.
The Specifics
The HMRC is sent data from online selling platforms like eBay and Vinted automatically, provided a threshold of £1,700 has been passed.
As of January 6th, the HMRC reports that over 5 million people have yet to complete their self-assessment tax returns. If these tax returns still aren’t submitted by the January 31st deadline, any evaders can be fined £100.
If you continue to avoid submitting your tax return for three months, fines of £10 a day are issued, reaching a maximum of £900. And if you still haven’t paid after six months, you’ll be charged either 5 percent of the tax owed, or a payment of £300, depending on which is greater.
Late tax payments also incur 7.25 percent in interest, again increasing to 5 percent extra, with both penalties continuing in cycles of six and 12 months.
Payment plans are available through the HMRC for those owing less than £30,000, but your best bet is to start paying before it spirals out of control.
