HMRC issues warning to anyone who is selling items online

The Labour Party government tax department said on social media anyone selling personal items, including gifts, online doesn’t need to pay Income Tax on these.

HMRC wrote on Twitter/X: "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."

Unwanted Christmas gifts? 👀🎄

If you plan on selling your own personal items via an online marketplace, such as used clothes, an old TV, or unwanted furniture, you don’t need to pay income tax on this.

Click below for more info. 👇https://t.co/UNX2cW8YPy pic.twitter.com/mW90MpaBYb

— HM Revenue & Customs (@HMRCgovuk) December 28, 2024

However, you may need to tell HMRC if you receive income through an online marketplace or social media.

HMRC explains online: "If you’re only selling personal possessions you’ll probably not have to pay Income Tax on these.

"However, depending on the items you sell and how much you sell them for, you may need to pay Capital Gains Tax.

"This applies to selling personal possessions where the item is worth more than £6,000."

HMRC said it is working alongside online platforms to ensure sellers receive clear guidance on their tax responsibilities.

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HMRC message to eBay, Airbnb and JustEat online sellers:

People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “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.”