Posted February 25, 2016
HMRC’s clampdown on undeclared income
In July 2015 HMRC launched a campaign to clampdown on individuals and businesses who let out rooms in their homes on the internet or sell goods on sites such as Amazon, ebay or etsy without paying tax.
Many people who use these sites are unaware that they should be completing a self-assessment tax return for the money they receive from sales.
So, when does selling a few unwanted Christmas presents or out grown children’s clothes turn into a business?
The main way to look at it is, when the item was acquired were you intending to sell it on? For example, if you buy some clothes at a car boot sale, or are given some kitchen units by a friend and you intend to sell them on for a profit you should be preparing a tax return and declaring the income. If they are your clothes you have grown out of, or you are updating your kitchen and decide to sell your units then these are one off sales and you would not need to complete a tax return. There is however, no set rule and if you find yourself selling a lot of personal items you no longer want you could find yourself being investigated by HMRC.
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