HMRC to start monitoring sellers on Vinted, eBay and other online platforms

[Somatosensational]

https://www.theguardian.com/money/2024/jan/01/selling-goods-online-be-warned-hmrc-will-soon-know-about-it

I wonder how long it will be before people having a clear out or selling their car have their benefits stopped.

HMRC says people selling off clothes or items that they originally bought at a higher price will not be liable for tax on that income.

Not likely to happen to go you’re just having an occasional clear out.

They won’t come after people having a clear out. There’s a lot of sellers on there who buy bulk to resell at a high price.

I’ve seen sellers with dozens of the same item of clothing in different colours and sizes, so clearly not a clear out.

no, rather a mandatory tax return.

if you do generate more than a minimal amount selling surely that income should count towards taxes and/or benefits.

The tax rule has always been (as far as I'm aware, in a simplified form) if you're selling your own stuff to have a clear out that's fine, if you're buying stuff to resell then there is a tax implication.
This seems along to the same lines. It's aimed at professional sellers who aren't declaring, rather then those having a new year's clear out.

How are they going to determine what the original price was?

F

Hilarious that the government spend money monitoring this, but are quite happy to not chase after their mates who they gave billions dollars PPE contracts to and didn't deliver, or the billions that was fraudulently claimed in furlough payments etc! One rule for the average Joe and another rule for those multi millionaires who like to tax dodge!

It will be the people on Vinted/eBay selling loads of identical items in a whole range of different sizes.

They've been talking about this for years and years. I can't see how it will work without people getting caught in the crossfire who shouldn't be. They say they're looking for people receiving more than £1000 a year, but that could easily be someone selling their personal possessions. Interesting that only eBay and Vinted are mentioned. Business selling isn't allowed on Vinted.

Back to selling at car boots then! 😁😂

They like to be seen to be doing something and hurting the little people is like a sport for them.

There is a £1000 allowance, earnings over that should already be declared

None of this means that there is a tax liability, only that a tax return should be submitted

In your tax return

They won’t be sending an instant tax bill to someone who has sold things

They are looking for businesses who earn an income from selling on there - we've all seen them. They don't care about people selling their own secondhand items.

Those who buy cheap crap to resell ARE running a business though, and so yes why shouldn't it be taxed?

The HMRC have got much more lucrative things to do than chase Vinted sellers.

This has been in the news before. Nothing seems to have ever come of it for private sellers, genuine ones that is. Private sellers with endless supplies of new stuff are another matter I believe and may be picked up on.

Every few years the same article is recycled. I never sold enough to put me over the threshold but have seen many sellers registered on Ebay as Private sellers, no returns accepted with vast amounts of brand new and identical items for sale. They are the ones that make it bad for the rest.

Good, anything that stops this crazy trend of inflated price resellers.

I know quite a few people who top up their benefits by buying stuff at jumble sales and then selling it on for a few quid. Tax has already been paid on pre-loved goods, so I cannot fathom why there should be a "tax implication". Also, online sellers pay the platform for the ability to sell, and the platform pays taxes. Greedy, greedy Tories.

Surely a lot of sellers are in China - can they tax them?

Does this mean I can include things I sell at less than I paid for them in my tax return? And offset my self-assessment tax payment against the losses?

Perhaps related to this - I read last week that a new law is being passed to allow DWP to examine the bank accounts of those receiving benefits; so would be able to identify resellers?

I agree with this. It won't touch the house clearers, or declutterers, but it will touch back door car dealers etc

We earn more with our selling side gig than my part time job. It definitely needs to go on a tax return. Why wouldn’t it?

The only questionable bit is that it’s registered as my earnings not his, as he’s a higher rate taxpayer.

Then there will be a report in the paper that HMRC are going to start watching Bargain Hunt at lunchtime. 😁