MARTIN Lewis has warned EVERYONE with a Vinted account to do an urgent check now or risk losing £1,000.
The founder of MoneySavingExpert (MSE) explained how the second-hand market was told to report its users’ earnings to HMRC.
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Martin Lewis warned everyone with a Vinted account to do an urgent check. Credit: Rex
Those who make money on eBay and Etsy or rent out their home on Airbnb will also be affected.
New rules for these companies ensure that anyone who earns more than £1,000 online must declare their earnings to tax.
On Wednesday night, Martin tweeted: “Selling on eBay, Etsy or Vinted or renting out your home on Airbnb?
“Companies will now report some earnings to HMRC, so check if yours will be and if you need to pay tax.”
Along with his post, Martin also shared an article on the MSE website.
It said: “If you sell goods online on sites such as eBay, Etsy or Vinted, rent out your home on Airbnb or earn extra income from providing services through platforms including Deliveroo or Uber, then these companies will soon start passing on information about you to HMRC.”
A business will only pass data to HMRC if it “sells 30 or more items a year” and earns more than £1,700 (€2,000).
Under the current rules, you can earn £1,000 a year in addition to your day job without having to pay tax on it.
If you earn more, you must register as self-employed and pay income tax.
The MoneySavingExpert website states: “If the total amount you earn through the platform in a tax year is OVER £1,000, you PROBABLY need to tell HMRC and MAY have to pay tax on it.”
Miruna Constantin, tax manager at accountancy group RSM, previously warned sellers: “It’s never been easier to sell in that ugly formal sweater or garish socks on online platforms like Vinted.
“However, it’s important to understand the tax rules or you could be in for an expensive shock from HMRC in the future.”
Meanwhile, Martin warned households earning less than £40,000 to do an urgent check.
And it reveals how thousands can turn £800 into £5,000.
He recently said thousands of households could now feel the benefit of switching energy suppliers – and Lewis said it was “finally” worth the move.
Lewis also went on to explain how customers can get £15 a month for free – and it’s so easy to do.
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Source: HIS Education