Selling goods online? Be warned: HMRC will soon know about it

[WalkinDude]

Anyone selling used clothes on Vinted, renting out their home on Airbnb, or getting rid of old camera equipment on eBay is going to come under fresh scrutiny from the taxman, following a crackdown on income earned from online trading.

From 1 January, HM Revenue & Customs will require digital platforms to collect information on how much their users make.

Countless sellers who have never declared their income from these sites could soon be on HMRC’s radar and face the prospect of large bills, or even fines, if they do not adhere to the law.

Dawn Register, head of tax dispute resolution at accountancy firm BDO, says HMRC could already request the information from UK-based digital platforms on an ad hoc basis, “but the new rules, coming into force from January 2024, mean that this information will start to flow automatically – and globally”.

Websites in any countries that have signed up to rules set out by the Organisation for Economic Co-operation and Development (OECD), will collect information on UK-resident sellers and share that with HMRC.

Register says this means that if you are letting a holiday home abroad through a non-UK website, the data could make its way back to the authorities here.

What is changing?
Websites will have to collect data about sellers. For individuals, this will be their name, address, date of birth and national insurance number, plus what they have earned and paid in fees on the platform. If a property is being let, they will need its address. This information will not have to be shared with HMRC until the end of January 2025.

...more

 

[seemly]

That's rich, coming from one of the most corrupt governments the UK has ever seen.

 

[Ben Thomas]

... and if you run your own ecom? Lol.

2024 is an election year, anyway, so let's hope people aren't stupid this year and keep them in.

 

[WalkinDude]

HMRC says the regulations will help taxpayers to 'get their tax right first time' and 'bear down on tax evasion'.

complete meltdown on the DM. 1500 comments.

 

[Ben Thomas]

Just when I thought this gov could not embarass us further. The world is looking, and we are doing this shit.

 

[Paullas]

Here is an update: https://www.moneysavingexpert.com/news/2024/01/online-platforms-etsy-vinted-airbnb-report-hmrc/

 

[seemly]

It's nuts to me that you:

• Are taxed on earnings
• Things you buy are taxed
• When you sell those things, depending on their value, you (could) pay tax on it

I partially understand things like inheritance and capital gains taxes, etc., but while there are going to be people out there who probably have a fantastic system for buying and selling used items, they must be edge cases.

It really is a case of keeping the poor poor.

 

[Ben Thomas]

Welcome to the UK, where your wallet is never lonely – it's always in the caring hands of HMRC! Let's embark on a whimsical journey through the everyday taxes that add a little 'extra' to our lives:

• A is for Apples to Zucchinis - Every trip to the supermarket is a feast... for the taxman.
• B is for Bills, Bills, Bills - Water, gas, electricity, and a little something extra for the tax collector's piggy bank.
• C is for Council Tax - For the joy of bins being collected and potholes being... well, sometimes filled.
• D is for Driving Licenses - The cost of legally being stuck in traffic.
• E is for Earnings - Work hard, pay hard.
• F is for Fuel Duty - Remember, every mile driven helps pave the road... somewhere else.
• G is for Gift Aid - Where generosity meets bureaucracy.
• H is for Housing Stamp Duty - Because buying a house wasn't expensive enough already.
• I is for Insurance Premium Tax - For when life's uncertainties come with certain costs.
• J is for Jaffa Cakes (or are they biscuits?) - Even your snack preferences are a matter of national fiscal importance.
• K is for Knick-Knacks - All those little extras come with a little extra tax.
• L is for Landfill Tax - Throwing things away? That'll cost you.
• M is for Mobile Phone Bills - Stay connected, stay taxed.
• N is for National Insurance - Like a savings account you can't access.
• O is for Online Purchases - Click 'Add to Cart' and help fill the country's coffers.
• P is for Petrol - Fuel your car, fuel the economy.
• Q is for Quaint B&B Stays - VAT comes with the room and the view.
• R is for Road Tax - Because roads don't maintain themselves (or do they?).
• S is for Sugar Tax - Sweetening your drink, one penny at a time.
• T is for TV License - The price you pay for avoiding the 'Are you still watching?' judgement.
• U is for Utility Tax - A warm home comes with a warm tax glow.
• V is for VAT - The granddaddy of them all, adding that extra 20% of fun to almost everything.
• W is for Wine Duty - The more you wine, the more you pay.
• X is for X-mas Trees - Even festive cheer isn't exempt.
• Y is for Your Favorite Coffee - A sip of tax with every cup.
• Z is for Zoo Visits - Because even watching penguins can contribute to the national budget.

 

[Kaleido]

R is actually for Vehicle Tax