New rules impact eBay, Etsy, and Airbnb users
MoneySavingExpert founder Martin Lewis has issued a warning to anyone with a Vinted account, urging them to check their accounts immediately or risk losing thousands of pounds. The popular secondhand marketplace, along with eBay, Etsy, and Airbnb, has been instructed to report the earnings of its users to HMRC. This means that anyone who earns more than £1,000 online will need to declare their earnings for tax purposes.
Martin Lewis advises households earning less than £40,000 to take action
In addition to the Vinted warning, Martin Lewis has advised households earning less than £40,000 to urgently check their financial situations. He also reveals a strategy that could turn £800 into £5,000. Lewis has been vocal about the benefits of switching energy suppliers and states that it is now worth considering. Furthermore, he explains how shoppers can easily receive £15 per month for free.
New rules target online sellers and home renters
The new rules implemented by HMRC require companies such as eBay, Etsy, and Vinted to pass on information about their users if they sell more than 30 items per year and earn more than £1,700. If you earn less than £1,000 per year from online platforms, you are not required to pay tax on the income. However, if your earnings exceed £1,000, you must register as self-employed and pay tax accordingly. It is important to note that these rules also apply to those who rent their homes on Airbnb.
According to the MoneySavingExpert website, if you earn more than £1,000 in a tax year from an online platform, it is likely that you need to inform HMRC and may be required to pay tax on this income.
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