Who is affected?
If you're clearing out your home (so not selling online for profit), eBay probably won't need to request your details for HMRC and you're unlikely to be taxed.
How does this impact me?
If you reach the threshold of online selling, eBay may need to request some details to be shared with HMRC. However, you're still unlikely to be taxed.*
*The current threshold is 30 sales or £1,740 a year. You can continue to sell even when you've reached this level.
Why is this happening?
There’s no new ‘Side Hustle Tax’ for selling online—just an update on how eBay reports sales to HMRC.
There are updates happening to HMRC reporting. While it may seem confusing, it will only apply to some sellers and is not a new ‘Side Hustle Tax’ or a change to existing tax rules for selling online.
Clearing out your home?
Imogen, Manchester
Imogen loves fashion and uses eBay to occasionally clear out old clothes from her wardrobe. She sold a total of 6 items on eBay in the last year, totalling £240 in total sales.
She won't be asked for her details by eBay to share with HMRC, as she hasn't reached the digital reporting threshold. As she's selling occasionally to clear out, it's unlikely she will need to pay tax.
Find out moreGuidelines on threshold
Connor, London
Connor loves working on cars in his spare time and fixing up old models. He sells car parts and accessories on eBay to help fund his next purchase. In the past year, he sold 42 items.
As he passed the digital reporting threshold of 30 items per year, eBay will contact him for details to send to HMRC. However, this doesn't necessarily mean he will pay tax.
Find out moreThere’s no new tax
Jack, Liverpool
Jack resells collectable cards on eBay. Some of his rarer cards sold for a high value and he made £1,935 in total sales over the last year.
As he passed the digital reporting threshold of £1,740 per year, eBay will contact him for details to send to HMRC. This doesn't necessarily mean he will pay tax, as there is no new tax. However, Jack should seek guidance from HMRC to learn more information.
Find out moreCheck if you need to pay tax
Official guidance and examples from HMRC will provide information on if you need to pay tax for selling goods on eBay. If you’re making £6,000 on a single sale you may be liable for CGT Capital Gains Tax.