HMRC issues message to anyone selling unwanted Christmas gifts online | Personal Finance | Finance
His Majesty’s Revenue and Customs (HMRC) has issued a message to anyone selling unwanted Christmas presents online. If you make an income selling goods through online marketplaces such as eBay and Vinted, or on social media via platforms like Facebook Marketplace, then in some cases you may have to pay tax.
But of course, this depends on whether this money is your main source of income or an additional source, like a ‘side hustle’. Anyone gaining extra income outside of their regular job must register for Self Assessment and file a tax return if their earnings are more than £1,000. Everyone in the UK has a tax-free trading allowance of £1,000, in addition to their primary employment, but if you go above this threshold, you must inform HMRC.
But if you are simply selling on some unwanted personal items, including gifts received this Christmas, then you don’t need to inform HMRC or pay income tax on this. Personal possessions can include items like clothing, ornaments, kitchen equipment, table and chairs, jewellery, computers and mobile phones.
Explaining the tax rules in a post on X (formerly Twitter) this week, HMRC said: “Unwanted Christmas gifts? If you plan to sell your own personal items, such as used clothes or an old TV, you don’t need to pay income tax on this.
“Fact: 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.”
But sellers should note that depending on the items being sold, and how much they sell for, in some cases you may need to pay Capital Gains Tax. This applies to selling personal possessions where the item is worth more than £6,000. It also applies to the total value of items which form a set, such as chess pieces, books by the same author or on the same subject, or matching ornaments, such as vases or statuettes.
You can use HMRC’s online tool to check if you need to tell the Government about income you get from using online platforms, and in some cases you may still need to tell HMRC about your income, even if you don’t have to pay any tax on it.
HMRC added: “If you’re just selling unwanted personal belongings from time to time like old toys and clothes, whether it’s online or in person, you don’t usually need to tell HMRC. It’s only if you’ve sold a single personal item or collection for more than £6,000 that you need to tell us as you might have to pay something called Capital Gains Tax. Still unsure? Use our quick tool on GOV.UK to find out if you need to tell us and what to do next.
“An example of selling personal belongings: You use online platforms and apps to sell some sweaters you no longer wear. You also occasionally sell unwanted gifts and items from around your home when you’re having a clear out. None of these are worth anywhere close to £6,000. You don’t need to tell us and won’t pay any tax. ”
Those who may need to register for Self Assessment and pay tax include those who:
- buy goods for resale or make goods with the intention of selling them for a profit
- offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
- AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year
If you regularly sell goods or provide a service through an online platform, HMRC recommends that you check the guidance about selling online and paying taxes on GOV.UK.
A link is also available on the HMRC app in the ‘news’ section under the ‘communication’ tab to help you decide if your activity should be treated as a trade and if you need to complete a Self Assessment tax return.
