Martin Lewis breaks down ‘side hustle tax’ details after confusion over eBay and Vinted rules

Martin Lewis explains 'side hustle tax' after social media confusionThe Martin Lewis Money Show Live, ITV

Transcript

00:00 I had some woman got in touch with me on social media,

00:03 worried because she was selling her old baby stuff

00:05 and for a couple of hundred quid,

00:07 because the baby had now grown out of it, I'm going to be taxed.

00:09 No, you are not going to be taxed.

00:12 Selling your old stuff, doing the clear-out,

00:14 is not a taxable event.

00:16 Tax is only due for those who are trading.

00:20 That's the word, which means making or buying goods

00:24 with the intent to sell them at a profit.

00:27 Common parlance, doing a bit of a business or a side hustle.

00:31 That is taxable.

00:32 And even if you are trading,

00:33 you can sell turnover of around £1,000 a year,

00:36 it has to include platform fees, without any tax.

00:39 If it's above that, then you are,

00:42 and you've always been eligible to pay tax on the profits.

00:46 Nothing's actually changing, they're just reporting a bit more.

00:49 So if you weren't declaring when you should have declared,

00:51 it may be an issue, but most people just doing the clear-out,

00:53 forget it, carry on.