Even selling 30 items a year will give HMRC cause to investigate our ebay accounts, that includes selling personal items. This is going to put a serious dent in the number of private sellers on ebay but is good news for car boot sale organizers . Thanks for the video gorgeous

Hi, will this £1000 be from your sales or from profit only? Because we can sell like £2000 but earn less than £1000 due to fees and product purchase price. I feel tax in the uk are not very clear to be fair. Almost as if they are trying to hit us with the bit of money we can make, all because were trying to survive due to the crises and/or create something for us.

@RebeccasFinanceTutorials

6 ай бұрын

Hi bro1046 I agree and it's become harder to live pay check to pay check with the cost of living crisis. The good news is while those who earn over 1k from their side hustles will need to complete a self assessment return, you will be able to take off any allowable costs meaning your tax would be less. So in your example if 2k was your revenue and 1k your allowable costs and you had used up all of your personal allowance through your paid role and you were a basic rate tax payer then you would be taxed at £2k less £1k which equals £1k then x 20% = £200 of tax

Hi, I make costumes and props and stuff and have recently considered starting to sell them on Etsy but this new tax announcemnet has me all turned about and I'm super scared I'm going to start selling, earn over £1,000 and get fines from the HMRC! I'm only 20, a fulltime student and have no experinece paying taxes. My issue is that some of my bigger pieces are worth up to £800 so just by selling one I'd be super close to the threshold. I haven't even put anything up for sale yet because I'm so nervous about all this! Do i have to declare myself before I start selling or after? And when I do, where do I learn how to file taxes and such? I was never taught and I have no one to teach me. Any advice or even just to be pointed in the right direction would be super helpful. Thank you xx

@RebeccasFinanceTutorials

6 ай бұрын

Hi hun so you need to earn 1,000 revenue first and it has to be within a tax year do 6th April to 5th April each year, then you get to deduct any allowable costs from the revenue to arrive at any profit. Also you have an amount each year that you can earn called a personal allowance before you start paying any tax x I am going to post another video to answer your question in full here x

@eyehatemyself8854

6 ай бұрын

@@RebeccasFinanceTutorials Thank you so much for the speedy and helpful reply! I knew about the personal allowance from when I was employed over the summer (around £12,000 a tex year I believe?). I'd just heard that you needed to declare yourself to the HMRC if you were earning over £1,000 and that you could get fined of you didn't (even if you were under the personal allowance and so aren't even actually paying taxes) and I just assumed that with that I'd have to provide evidence to the HMRC of exactly how much I'm earning which I have no idea how to do and keep track of. A lot of faff and panic for just wanting to sell some arts and crafts if you ask me! Thank you so much for your help and I look forward to the video xx

@RebeccasFinanceTutorials

6 ай бұрын

@@eyehatemyself8854 Do not panic hun I will show you in the next video exactly what you need to do here and I promise you it is straight forward x

what if you make things from resin but are only just breaking even and getting your money back and are solely doing a hobby cos you suffer from mental health issues but at the same time this is therapeutic for you ,you spend 100£ on materials and sell on ebay for 115£ take away fees and postage and you get your money what then if you just a private seller that likes making things but has no interest in making money from it or if you sell your old mobile phone and then use the money to put towards a new one ?? Would like to hear your thoughts on this 🙌great vid

@RebeccasFinanceTutorials

2 ай бұрын

Thanks hun and I wouldn't worry here you hmrc are not going after everty tom and Harry for simply having a hobby and don't forget you can earn 1000 turnover gbp per tax year which you do not need to declare currently in this tax year 2024 to 2025

Save all your bank statements. That will have record of all deposits. Handy for me because I sell on multiple platforms but have cut way back due to mobility problems n chronic pain.

Er .... If I buy a shirt for £25 , wear it a couple of times but aren't really keen on it , so sell it for £15 , Ive NOT MADE £15 HAVE I !!???? I've lost a tenner !!!! Which bit dont HMRC get about that ????

I’m 16 in school and don’t have a job, I re sell on vinted and eBay as a way of making some money. I probably made about 3k last year. Would that mean I would have to pay tax with this new law?

@RebeccasFinanceTutorials

6 ай бұрын

Hi hun with ebay and other stores they will ask if you are 18 before you set up an account because those 18 and over have to pay national insurance and tax. Normally those 16 and under can use their parents accounts as a result but that also means their parents are responsible for declaring those earnings themselves. When you hit 18 you will receive what we call a personal allowance which is an amount you are allowed to earn each year before paying taxes essentially so each year most people can earn 12,500 per year before paying tax but if their income is received in a non payroll way (basically a job) so income such as dividends, shares, property, extra hobbies they then have to declare their income on a self assessment return. It doesn't necessarily mean that they have to pay tax but that they need to complete the form to tell hmrc their revenue, costs and tax if there is any. I hope this helps hun but any other questions just ask away :)

Here is the next video in the series here to help with your questions: kzread.info/dash/bejne/h4Br0sVvo8q0o9I.html

Hi, we are currently in the process of self assessment, and we are assessing based on this financial year. Do you know if this legislation allows hmrc to look at historical information? Or is it for only future transactions? Thanks

@RebeccasFinanceTutorials

6 ай бұрын

Hi @bigfellaandy so typically HMRC have 12 months from the filing date to investigate a self assessment return however they can in very extreme cases look back either 4, 6 or 20 years x

@bigfellaandy

6 ай бұрын

@@RebeccasFinanceTutorials so if for example they looked back prior to this, and profit made was below the personal allowance what would usually happen in this case? We have previously sold, but never picked up as much as we did this year, so a lot of the stock we purchased was actually keeping us out of profit, despite sales going over. I know personal allowance is £12000 aprox, so does this mean when self assessing we can make this much profit tax free?

What does this mean for me who sells my own second hand items with no proof of purchase or as a side hustle business? But I easily sell over 1000£ per year..

@RebeccasFinanceTutorials

6 ай бұрын

Hi Adam it means that HMRC will see you as being both employed (from your paid job) and self employed (for the side hustle) and you will need to file a self assessment return to show the revenue and costs associated. With regards to the purchases going forward I highly recommend keeping a copy of the receipt or invoice (hmrc asks you to keep them for 7 years) as evidence. You will have bank statements that show the purchase if made in that manner or if it was a cash purchase then unfortunately there is no set audit trail as such so definitely keep those receipts and invoices going forward. The tax to pay if any at all will be sales less allowable costs less any personal allowance you have left, then the applicable tax rate applied. All sole traders need to register with hmrc for self assessment by the 5th October after the tax year ends so for 2022/23 the tax year was 6th April 2022 to 5th April 2023, so you needed to register by 5th October 2023 to file before 31st January 2024. I hope this helps hun x

@RebeccasFinanceTutorials

6 ай бұрын

I didn't mention this in the video as this was for educational purposes but if anyone needs an accountants assistance with their self assessment and getting started, feel free to send me an email to info@eccounting.uk

@patcollins2922

6 ай бұрын

I’m a pensioner and selling a lot of my personal items which I think will be above the £1000 threshold, most of these items were bought in the 80s or 90s, there are no receipts. I’m very worried about how I prove I’m selling my old items. Do I fill in a tax return or wait and see if I hear from HMRC?

@RebeccasFinanceTutorials

6 ай бұрын

Hi hun not everyone here is going to be affected, what HMRC are looking for is those who they essentially class as "trading". Selling unwanted items here and there is not classed as "trading" and "taxable income" per say. The new rules mean that anyone making 30 transactions in one calendar year will likely be flagged as a potential trader. There are a few "badges of trade" that HMRC look at in the first instance to see if you are classed as a trader and where these rules will affect you so for instance they will look at your profit seeking motive, no. of transactions, nature of the asset, method of acquisition etc. - see the rules here: www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205

It’s not until 2025 when they are requesting these platforms to share data on people however they are asking people to declare from January 2024

@RebeccasFinanceTutorials

6 ай бұрын

Hi DJMIGHTY that's true in terms of the data being shared going forward from those platforms however HMRC already have the power to request this information. Unfortunately this is not a change in tax laws so if you earn more than £1k (earnings above the trading allowance) in the tax year 2022/23 - to be declared by 31 Jan 24 then you need to have told HMRC already and be filing a self assessment before 31 Jan 24.

@Mich_C

6 ай бұрын

So does that mean we have a year to prepare ?

@RebeccasFinanceTutorials

6 ай бұрын

Hi hun so if you earned the income between 6thApril 23 and 5th April 24, you have until 5th October 24 to let HMRC know if your earnings were above £1k, however in my next video I am going to show you how you can check if you need to file anything or let HMRC know x

Why don’t they ask Facebook marketplace to report to HMRC?

@RebeccasFinanceTutorials

6 ай бұрын

Hi hun they do have access to information from Facebook marketplace also.

Was this always the case but HMRC will now have more information? I already registered last year due to some online sales because I knew I'd be over £1,000

@RebeccasFinanceTutorials

6 ай бұрын

Hi Ashley, previously if you earned more than £1k then it would be up to you to declare this to HMRC and to file a self assessment return however now HMRC are able to obtain regular information from Etsy, KZread, Spotify, Print on demand shops, deliveroo driver apps etc. to obtain this information so that they can ensure that anyone earning more than £1k as a side hussle is declaring this x

PAY ! :)

Clamp down on tax dodgers lol. I had a small highstreet business that actually paid MOREcorporation tax than Facebook a few years ago. But yeah screw it out the little people if they dare stick their head above the parapet and earn over £1000.