HMRC warns eBay sellers of £100 fine for missing urgent rule change deadline
HMRC has set a deadline for individuals who have earned money by selling items on platforms like eBay, Etsy, and Vinted. Failure to report earnings could lead to a £100 fine.
New tax regulations that come into effect today may result in fines of £100 for those selling items on platforms such as Vinted and eBay. Sellers who earn over £1,000 through side hustles, including online sales or renting out spare rooms via apps like Airbnb, may be required to register for a tax return. This change follows HMRC’s introduction of new rules earlier in the year, requiring platforms like Etsy and eBay to share seller information, including sales figures and earnings, with HMRC.
Sellers have until today, October 5, to notify HMRC if they need to file a tax return, regardless of whether they have done so previously. Failing to meet this deadline could result in a £100 fine.
Alastair Douglas, CEO of TotallyMoney, warns against missing the self-assessment registration deadline of October 5. He advises sellers to inform HMRC if they have earned income over the past year and have not paid taxes on it. This includes income from various sources such as savings, investments, rental income, and earnings from selling items on platforms like eBay, Depop, and Vinted. Failure to register by the deadline incurs an automatic £100 fine, with additional penalties if not paid promptly.
According to government guidelines, individuals must file a tax return for the previous tax year if they were self-employed, paid the High Income Child Benefit Charge, paid Capital Gains Tax, were in a business partnership, or had a total taxable income exceeding £150,000. Additionally, individuals with untaxed income from sources like savings, investments, rental income, or foreign income may also need to submit a tax return.
To check if you need to file a tax return, you can use the online tool available on the government’s website. It is essential to prepare for the upcoming deadlines to avoid fines and penalties.
The new regulations aim to ensure that individuals accurately report their income and pay the appropriate taxes. Failure to comply with these rules could result in financial penalties for sellers, highlighting the importance of meeting HMRC’s deadlines regarding tax returns.