The announcement comes ahead of new rules that oblige digital platforms to report data to HMRC about the income earned by their users.
Following some confusion about the new rules, HMRC has confirmed that there are no changes to tax rules, or new tax, for people selling their unwanted possessions online.
So if you are selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or offloading unwanted Christmas gifts, there is no tax to pay.
Anyone who is unsure whether their additional income could be taxable should search ‘online platform income’ on Gov.uk to use HMRC’s free online tool. Alternatively, they can download the HMRC app and go to the ‘news’ section under the ‘communication’ tab for more information.
Angela MacDonald, HMRC’s deputy CEO, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online, there is no tax due.
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“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self-assessment.”
The new reporting requirements for digital platforms came into effect at the start of 2024. Those who sold at least 30 items, earned roughly £1,700 or provided a paid-for service on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.
However, the sharing of sales data does not automatically mean the individual needs to complete a tax return or owes tax.
Those who may need to register for self-assessment and pay tax include people who buy goods for resale or make goods with the intention of selling them for a profit, or those who offer a service through a digital platform.
To be liable for tax, these workers would need to generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.
