If you prefer to live in ignorance fine, your choice.
The regulations now stipulate the new rules will require platforms such as eBay, Facebook Marketplace, Airbnb etc. to share the details of their users with HMRC as part of their general affairs.
HMRC have already posted messages on Facebook regarding this change however it seems many users chose not to read them or simply ignore them. Facebook are not going to put themselves in a position that leaves them open to sanctions by HMRC.
To clarify:
There is no new tax rules; they are existing rules.
These changes won’t affect individual sellers who are decluttering or selling their unwanted items. You only have to declare revenue from trade. Sellers should consider if what they’re selling fits with HMRC ‘badges of trade’.
When a seller purchases or makes items specifically to sell they can earn up to £1,000 before they have to register as self-employed and complete a self assessment. Once they earn even just a penny over the threshold, they are required to declare the income to HMRC as it may be taxable.
Personal tax allowance can be used against this income, but it just ensures all taxes are paid ensuring everyone pays their relevant taxes, the government hopefully won’t need to raise taxes for everyone else.
