No New Taxes for Online Sellers, HMRC Confirms

Some sellers will receive notifications from online platforms in January that their sales data will be shared with HMRC. Individuals selling personal items online will not be taxed but will have their sales data shared if their profits exceed a specified threshold. The government clarified that selling personal items like clothes or toys does not create tax obligations unless specific limits are surpassed. The new reporting process will begin in January 2025, requiring platforms like eBay and Vinted to share sales data with HMRC. This applies to individuals who sold at least 30 items, earned around £1,700, or provided paid-for services online in 2024. HMRC emphasized that there are no new tax obligations for occasional online sellers. Users will be informed by platforms that their sales data and some personal information will be shared with HMRC. Information to be reported includes names, addresses, VAT or National Insurance numbers, bank account details, and total platform fees. While selling personal items usually does not incur income tax, sellers might need to pay capital gains tax if individual items are sold for over £6,000. Sellers generating over £1,000 in total annual income from online trading or services may need to declare and pay tax after deducting expenses. Platforms like Vinted and eBay have confirmed compliance with the rules. Vinted clarified that users selling items at a loss will not owe taxes, while eBay will report seller information to HMRC annually. The new rules have raised questions about taxable income and whether “side hustle” income is taxable. HMRC confirmed that gains under £6,000 for the tax year do not need to be reported. Labour has pledged to address tax avoidance to raise funds for the NHS and support initiatives like free primary school breakfasts. Other plans include digitizing the tax office and expanding tax schemes reported to HMRC. Please rewrite this sentence.

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