Martin Lewis reassured sellers on platforms like eBay and Vinted that newly implemented HMRC rules primarily target traders who profit from selling. As of this month, specific digital platforms are mandated to share seller data with HMRC, marking an effort to curb tax evasion linked to side hustles. Sellers generating over £1,000 annually from their activities must register as self-employed and complete tax returns. Non-traders and those below this threshold will largely remain unaffected by these changes.
The tax rules have not changed. Tax is only due for traders - people who are buying things to sell for a profit.
For traders, you can sell a maximum of 1000 a year before you start paying tax on it.
This now allows tax authorities to detect and tackle tax evasion, while also levelling the playing field with how traditional businesses are treated for tax purposes.
Online platforms are now required to report seller information, aligning with a new crackdown on 'side hustle' earnings to improve tax compliance.
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