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Online selling apps to share more information with HMRC

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If like many you are making some extra cash from selling items and clothes online or renting out your spare room there are new rules in play from 1st January 2024 affecting platforms like Vinted, Etsy and eBay. 

Under new rules, these platforms need to share transaction details with tax authorities so that they can keep an eye on income that should be declared. It is part of a global effort to crack down on tax evasion. 

Martin Lewis, Money Saving Expert has put out this reassuring Tweet: 

“Many are worried after reports that Etsy, eBay, Vinted etc will start automatically passing sales info to HM Revenue. To set your mind at rest, best to read our full guide here, but in brief: 

  1. There is no new tax 
  2. Unless you're 'trading' selling your old stuff isn't taxed 
  3. Only sales over c£1,700 or more than 30 items a year are reported” 

If you are declaring this already then there is no need to change a thing. 

This is an important consideration for charities who will have to think carefully about any “trading” activities, as there are lots of restrictions and rules that apply, across a range of things. 

Common areas we come across are: 

  • Sale of alcohol 
  • Bingo’s, raffles and lotteries 
  • Sale of donated items 
  • Sale of merchandise (items bought in to sell – not donations 
 

All of these have different regulations affecting them without even digging into tax. 

Needless to say, the issue of charities and their tax liabilities is more complex. As always, we are happy to help but we are not VAT experts and HM Revenue and Customs should always be your definitive port of call.  

Our experienced Community Development are on-hand to answer your queries and can be contacted on 01362 698216 or by email .