{"id":245570,"date":"2024-01-02T19:24:27","date_gmt":"2024-01-02T19:24:27","guid":{"rendered":"https:\/\/www.theindustry.fashion\/?p=245570"},"modified":"2024-01-02T19:29:45","modified_gmt":"2024-01-02T19:29:45","slug":"resale-platforms-obliged-to-share-sellers-details-with-hmrc-in-side-hustle-tax-crackdown","status":"publish","type":"post","link":"https:\/\/www.theindustry.fashion\/resale-platforms-obliged-to-share-sellers-details-with-hmrc-in-side-hustle-tax-crackdown\/","title":{"rendered":"Resale platforms obliged to share sellers' details with HMRC in \"side hustle tax\" crackdown"},"content":{"rendered":"

Resale platforms such as eBay, Etsy, Amazon and Vinted must now share seller information with HM Revenue & Customs (HMRC) as part of a crackdown, dubbed the \"side hustle tax\".<\/strong><\/p>\n

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The move will allow tax authorities to detect and tackle tax evasion, while also levelling the playing field with how traditional businesses are treated for tax purposes, according to HMRC.<\/p>\n

It comes amid a number of tax changes for the start of 2024, including changes to the national insurance rate that employees pay.<\/p>\n

The threshold for earnings from so-called online side hustles is set at more than \u00a31,000 a year \u2013 above this, online sellers must register as self-employed and file a self-assessment tax return at the end of the financial year.<\/p>\n

HMRC was already able to request information from UK-based digital platforms, but Britain has signed up to new rules that came into effect at the start of this year via the Organisation for Economic Cooperation and Development (OECD) allowing it to share information with other tax authorities to access data from platforms based outside the UK.<\/p>\n

Online platforms will be required to report seller information directly to HMRC \u2013 although not until the end of January 2025.<\/p>\n

This will include information such as tax ID, bank account details, as well as the amount and number of transactions made by sellers with sizeable trading activity.<\/p>\n

It will apply to digital apps and platforms \u2013 including website providers to third-party sellers \u2013 and cover the sale of goods and services, such as handmade or second-hand clothes and items, alongside taxi hire, food delivery, freelance work, and the letting of short-term accommodation or driveway parking.<\/p>\n

While there was an outcry from consumers on social media about the move, Vinted CEO Adam Jay told the BBC that only a small proportion of sellers on its platform would be affected.<\/p>\n

\"It\u2019s actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information,\" Jay told the BBC.<\/p>\n

\"It\u2019s only those people who are making a profit from selling second hand items that might be eligible for tax and then it\u2019s about their own personal tax situation what tax would ultimately be due to HMRC,\" he said.<\/p>\n

Meanwhile in a statement, eBay said:\u00a0\u201cWe are committed to ensuring that our sellers comply with tax regulations. We will work closely with HMRC to ensure a smooth implementation of the reporting requirements.\u201d<\/p>\n

Sustainability writer and broadcaster Lucy Siegle described the move as unfair on consumers who were making sustainable fashion choices and instead urged the Government to focus their attention on collecting tax from large corporations.<\/p>\n

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As usual there's an unfairness; clamping down on individuals in the sharing \/reuse economy when UK government gives tax dodging fast fashion companies a free pass is problematic https:\/\/t.co\/ZbrrH3a45s<\/a><\/p>\n

\u2014 lucy siegle (@lucysiegle) January 2, 2024<\/a><\/p><\/blockquote>\n