HMRC points message to anybody promoting undesirable Christmas presents on-line | Personal Finance | Finance | EUROtoday

HMRC (His Majesty’s Revenue and Customs) has issued a message to anybody promoting undesirable Christmas presents on-line.

If you make an revenue promoting items by on-line marketplaces or social media reminiscent of eBay, Vinted and Facebook Marketplace, then in some circumstances you’ll have to pay tax.

However, that is depending on whether or not it’s your major supply of revenue or an extra supply, like a ‘facet hustle’.

In a message on X (previously Twitter), HMRC mentioned anybody promoting private gadgets, together with presents, on-line doesn’t must pay Income Tax on these. Personal possessions can embrace gadgets like clothes, ornaments, kitchen tools, desk and chairs, jewelry, computer systems and cell phones.

The authorities physique wrote: “You don’t need to pay income tax on selling your own personal items such as used clothes, an old TV, or unwanted furniture. This does not make you a trader.”

But sellers ought to be aware that relying on the gadgets being bought, and the way a lot they promote for, in some circumstances it’s possible you’ll must pay Capital Gains Tax.

This applies to promoting private possessions the place the merchandise is value greater than £6,000. It additionally applies to the entire worth of things which kind a set, reminiscent of chess items, books by the identical creator or on the identical topic, or matching ornaments, reminiscent of vases or statuettes.

You can use HMRC’s on-line device to verify if you must inform the federal government about revenue you get from utilizing on-line platforms, and in some circumstances you should still want to inform HMRC about your revenue, even in case you don’t should pay any tax on it.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, mentioned: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due. 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.”

Those who might must register for Self Assessment and pay tax embrace those that:

• purchase items for resale or make items with the intention of promoting them for a revenue

• supply a service by a digital platform – reminiscent of being a supply driver or letting out a vacation dwelling by a web site

• AND generate a complete revenue from buying and selling or offering companies on-line of greater than £1,000 earlier than deducting bills in any tax 12 months

If you usually promote items or present a service by an internet platform, HMRC recommends that you simply verify the steering about promoting on-line and paying taxes on GOV.UK.

A hyperlink can also be obtainable on the HMRC app within the ‘news’ part below the ‘communication’ tab that can assist you determine in case your exercise ought to be handled as a commerce and if you must full a Self Assessment tax return.