Discussion
fourstardan said:
Does the latest tax imposed on Side hustlers also include Youtube revenue?
It’s not a new tax, it has always applied. The only difference now is that HMRC are clamping down harder on those that haven’t been declaring all their income.https://www.tax.service.gov.uk/guidance/check-non-...
Edited by smokey mow on Tuesday 2nd January 21:05
kiethton said:
What I fail to see is how this will differentiate between people selling their second hand possessions and those doing it for profit
I imagine one consideration would be the length of time someone has owned an asset, amongst other considerations and whether they are selling a lot of similar items.If I bought a sideboard ten years ago and sold it for a bit more than I paid for it, I doubt HMRC would be knocking at my door. If I bought ten of them in a year and sold each with 50% profit they might reasonably conclude I was dealing in sideboards.
The marketplace sites are obliged to share sales information with HMRC - I think the threshold is £5000 pa but I might be wrong on that.
I had a letter from HMRC mid last year as I had sold about £6k worth of things on Ebay - a couple of guitars I didn't want, some hifi etc. I declared that I was not a trader and that was that.
If HMRC had decided to investigate, it wouldn't have been hard to show the items were second hand and not bought for the purpose of reselling. Clearly there are people on Ebay etc selling goods for the express purpose of making a profit and if they aren't declaring their profit, they should be.
If you are selling multiples of any product, especially new, it's not going to be hard for HMRC to track that.
On the OPs question on Youtube, I'd think you should be making a self assessment on those earnings but that has always been the case.
I had a letter from HMRC mid last year as I had sold about £6k worth of things on Ebay - a couple of guitars I didn't want, some hifi etc. I declared that I was not a trader and that was that.
If HMRC had decided to investigate, it wouldn't have been hard to show the items were second hand and not bought for the purpose of reselling. Clearly there are people on Ebay etc selling goods for the express purpose of making a profit and if they aren't declaring their profit, they should be.
If you are selling multiples of any product, especially new, it's not going to be hard for HMRC to track that.
On the OPs question on Youtube, I'd think you should be making a self assessment on those earnings but that has always been the case.
Crippo said:
If, I sell my expensive Mountain Bike on eBay for £3000 and a few other odds and sods but its all personal stuff, surely we aren't talking about that being taxed ?
Correct, we aren't.Don't panic.
A person pays tax on their TRADING profits. You have to be TRADING.
Selling old tat you no longer want is not trading.
Selling second hand clothes is not trading.
Selling old furniture because you are tarting up the living room is not trading.
A person who is genuinely TRADING will be buying goods with the INTENTION of selling them on at a profit. They will most likely be doing this multiple times. So there will be a SERIES of transactions in any given year showing the individual buying and selling stuff over a fairly short period of time. They may be advertising. They may even be promoting the fact that they are running a business type operation.
However, this thread is named "Side Hustles". That implies someone is actually buying and selling with a view to making a profit on the transactions. That is HMRC's definition of "trading".
Eric Mc said:
Crippo said:
If, I sell my expensive Mountain Bike on eBay for £3000 and a few other odds and sods but its all personal stuff, surely we aren't talking about that being taxed ?
Correct, we aren't.Don't panic.
A person pays tax on their TRADING profits. You have to be TRADING.
Selling old tat you no longer want is not trading.
Selling second hand clothes is not trading.
Selling old furniture because you are tarting up the living room is not trading.
A person who is genuinely TRADING will be buying goods with the INTENTION of selling them on at a profit. They will most likely be doing this multiple times. So there will be a SERIES of transactions in any given year showing the individual buying and selling stuff over a fairly short period of time. They may be advertising. They may even be promoting the fact that they are running a business type operation.
However, this thread is named "Side Hustles". That implies someone is actually buying and selling with a view to making a profit on the transactions. That is HMRC's definition of "trading".
kiethton said:
What I fail to see is how this will differentiate between people selling their second hand possessions and those doing it for profit
There will be a lot of sellers on eBay selling new items in multiple quantities from their spare room which they have imported from China who aren't declaring it, there will be a lot of easy pickings to go at. They should look at the people doing the same at Car boot sales every week too but that would mean more work for them so it won't happen.
Jamescrs said:
kiethton said:
What I fail to see is how this will differentiate between people selling their second hand possessions and those doing it for profit
There will be a lot of sellers on eBay selling new items in multiple quantities from their spare room which they have imported from China who aren't declaring it, there will be a lot of easy pickings to go at. They should look at the people doing the same at Car boot sales every week too but that would mean more work for them so it won't happen.
The data they can get from the big platforms on the market is easy enough to build reports/patterns off of.
Using something like Ebay is an absolute con in terms of seller fees, and AirBnB is the same for the consumer so I'm sure we may see an influx of new platforms, but with that comes further risks.
Using something like Ebay is an absolute con in terms of seller fees, and AirBnB is the same for the consumer so I'm sure we may see an influx of new platforms, but with that comes further risks.
Jamescrs said:
kiethton said:
What I fail to see is how this will differentiate between people selling their second hand possessions and those doing it for profit
There will be a lot of sellers on eBay selling new items in multiple quantities from their spare room which they have imported from China who aren't declaring it, there will be a lot of easy pickings to go at. They should look at the people doing the same at Car boot sales every week too but that would mean more work for them so it won't happen.
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