Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

New tax checks on side hustles like eBay and Vinted risk confusion over different reporting periods

by January 11, 2025
January 11, 2025
New tax checks on side hustles like eBay and Vinted risk confusion over different reporting periods

HM Revenue & Customs is ramping up its scrutiny of “side hustle” earnings, requiring online platforms such as eBay, Vinted and Airbnb to submit information on users’ incomes for 2024 by the end of this month.

However, concerns have been raised that the discrepancy between the UK tax year (April to April) and the OECD’s reporting period (January to December) could lead many casual sellers to make mistakes on their tax returns.

The Low Incomes Tax Reforms Group (LITRG) warns that people might unintentionally provide inaccurate figures to HMRC because the data they receive covers the calendar year, not the tax year. For instance, only earnings from January to March 2024 would be relevant for a self-assessment due this month, yet the total figure submitted by the online platforms spans all 12 months of 2024.

“Just one quarter of the data people will receive is pertinent to the current tax return,” says Meredith McCammond, a technical officer at LITRG. “That could lead to confusion, especially for those filing a return for the first time and needing help during HMRC’s busiest period.”

Under the new guidance, any platform user earning over £1,700 or making 30 transactions in a year will have their information passed to HMRC. While this is not a new tax, it may lead to tax being imposed on individuals who previously were unaware they needed to declare online sales. Dawn Register of accountancy firm BDO comments that, despite incomplete data, HMRC will still have enough information to launch an investigation if a seller’s turnover appears high.

“The new rules may well mean there are some nasty surprises for people who are either ignorant of the existing legislation or haven’t declared their earnings,” Register says. At the same time, HMRC could be surprised by how much some casual sellers actually earn online.

Many casual sellers and “declutterers” will be shielded by the UK’s trading allowance, which lets individuals earn up to £1,000 a year from occasional trading without paying tax. A spokesperson for HMRC emphasised that “absolutely nothing has changed” for people selling unwanted personal items. The new focus is on those conducting consistent trading or making gains on sales.

Miruna Constantin of RSM UK recalls that, when the procedures were introduced last year, public worry spiked: “Chaos ensued when people thought HMRC might suddenly tax all the extra cash they made from selling unwanted Christmas gifts. HMRC has since provided detailed guidance.”

Practical steps for sellers

The new data, scheduled to be reported in quarterly blocks, should help sellers match platform statements more closely to their tax obligations. But for a smooth process, experts advise paying close attention to:
• dates: Figure out which quarter applies to your current self-assessment period (January to March 2024 for the 2023-24 tax year).
• allowances: Remember that the first £1,000 of trading income is generally tax-free, and separate capital gains rules may apply if you are making a profit on the sale of valuable items.
• when in doubt, ask: If you’re unsure, seeking advice from HMRC or a tax professional can help avoid costly errors or investigations.

With this expanded reporting, the government hopes to reduce hidden or accidental non-compliance. However, until sellers feel confident about how and when to apply the numbers from eBay, Vinted, and other platforms, the risk of “nasty surprises” remains.

Read more:
New tax checks on side hustles like eBay and Vinted risk confusion over different reporting periods

0
FacebookTwitterGoogle +Pinterest
previous post
Biden admin slammed for ‘waiting’ to declare genocide in Sudan
next post
Don’t worry. There is a common sense response to the surgeon general’s alcohol and cancer warning

You may also like

WeWork’s offices are back in business

August 5, 2022

UK inflation falls to 2.6% in March as...

April 16, 2025

Tradelly.AI Review – A Crypto Trading Platform that...

March 7, 2024

UK set to miss net zero goals without...

June 22, 2023

Tax relief system needs overhaul to prevent abuse,...

July 26, 2023

Passport delay warning as five-week strike called

March 17, 2023

Extraordinarily low unemployment means labour shortages of very...

September 13, 2022

UK inflation dips to 2.8% in February but...

March 26, 2025

UK battery storage capacity to be boosted by...

September 12, 2022

13 Must-Have Tips for Crafting the Best Product...

August 24, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Conservative ‘playbook’ to beat Democrats in court outlined in senator’s new book

      August 19, 2025
    • Conservative roadmap targets Medicaid, student loans for Trump’s ‘big, beautiful’ sequel

      August 19, 2025
    • Rubio hails Trump as ‘only leader in the world’ who can broker Ukraine peace deal after talks

      August 19, 2025
    • UK biostimulant startup SugaROx raises £1m to fast-track crop trials

      August 19, 2025
    • 5 Reasons Why Fundraising can Go Wrong

      August 19, 2025
    • 5 key moments inside Trump’s ‘big day’ with Zelenskyy, European leaders

      August 19, 2025

    Categories

    • Business (8,826)
    • Investing (2,220)
    • Politics (16,429)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved