Talk to the Taxperts

01382 312100

Sellers Of Unwanted Christmas Gifts May Not Have A Happy New Year

From 1 January 2024, digital platforms like Vinted, eBay and Etsy, will have to start collecting seller data and pass that over to HMRC to match against taxpayers’ records to make sure people report the right information on their tax returns.

Brought in to allow HMRC to find out more about potential untaxed income, this will impact millions of UK individuals who sell second hand items online as well as renting out properties, like Airbnb, or people selling their services online.

The first reporting deadline is 31 January 2025 and there will be fines and penalties applied to those who fail to submit reports, or submit ‘inaccurate, incomplete, unverified sellers’ records’ so digital platforms will need to implement new ways of collecting seller information in the New Year to ensure they meet their reporting obligations.

Sellers who receive £1,700 or less from fewer than 30 sales in a reporting period need not have their information provided to HMRC, however there may still be tax reporting obligations. If you make sales of £1,000 or more in a year, you will need to file a Self Assessment tax return and pay Income Tax and National Insurance contributions accordingly.

This could bring a new wave of individuals to HMRC’s attention who previously were unaware of their potential tax implications of giving their unwanted Christmas gifts a new lease of life.

If you need assistance with your tax return, or any other tax related matter, please get in touch with our Taxperts by calling one of our offices or emailing [email protected].

Latest News

View all latest news

February 9, 2024

Let Me Entertain You!

A client recently contacted us to ask about the tax implications for booking tickets for the Six Nations Rugby Championship. He was considering inviting both clients and staff…

January 3, 2024

New Year, New Tax Changes

With the start of another year, it’s time to think about the changes that lie ahead. Instead of skipping ahead to 1 April or 5 April, this year…

Download our EQ app and keep up to date with tax news, changes and have access to our EQ Portal, tax calculators and key tax dates at your fingertips. Click on the relevant button on your device to download our free app.

Visit EQ Accountants Visit EQ Accountants

Explore the full range of EQ Expertise

acca
CA
icaew
the-charteded-institute-of-taxation-logo