Your tax return & payment deadline is January 31st for sales you made between April 6th 2024 and April 5th 2025

Currently, if you are just selling your 'own items', then no!

However...HMRC could still request information from you and may ask you to fill in a tax return.

If you are selling 'trading items' then you might be required to pay tax.

Many people aren't aware of the most tax efficient way to calculate their tax, so they often end up paying when it could have been avoided.

However, it is really important the calculations are done correctly...there can be heavy penalties for incorrect or missing information.

Let's us calculate it all for you as our professional software applies all the most tax efficient methods.

Therefore, many of our clients pay zero tax.

100% yes, they can and it's frightening the level of data they now have.

Their AI Spy 'Connect 2.0' is quite unreal the amount of data it can gather on you.

It can see across all platforms including all the sales platforms such as Amazon, eBay, Vinted, Depop, Shopify etc. Even PayPal and Stripe. And all your social channels including Facebook Marketplace, Instagram, Facebook, etc.

The key issue is for you to get in sync with what HMRC already knows. For example, if it knows you've made 200 sales this year, DO NOT try and miss a few off. It already knows.

This means the numbers you send in, have to tally with the numbers they already have. Or it's called under-reporting, and they treat that seriously with harsh penalties and fines.

Our spreadsheet service gets you in sync and completely in step with HMRC.

Read our full article on the blog

All 3 are correct...

• £1000 is the taxable threshold for HMRC

• £1740, or 30 sales +is the reporting threshold for eBay.

So, if you exceed more than 30 sales or £1740 in trading income, eBay (and every other platform) will send your data to HMRC.

If you are then found have crossed the HMRC taxable threshold of $1000, tax may be due.

*Note: £1740 seems an odd number, but it's based on €2000 Euros.

**Even if you haven't crossed the HMRC threshold they might still ask you to fill out a self-assessment tax return. So, you need to know your numbers.

We saw this and it's very confusing.

It relates only to your personal sales.

It refers to you selling larger items or more valuable items, say for example a diamond necklace or a piece of furniture.

These may fall under Capital Gains Tax rules (very different to Income Tax rules).

To be honest, it doesn't really apply to 99% of sellers. Most sellers are either selling their own items or trading items a low cost.

If however you've sold a large item like that then you may need to tell HMRC, there is a free tax allowance of £3000 profit, so if you make more than that then HMRC will want a slice of your hard work.

CGT tax can be largely ignored by most sole sellers on eBay etc.

Yes.

There is a column in the spreadsheet where you can self-select 'own items' or 'trading items'.

Our software then calculates the numbers based on data you input. If you have been selling 'trading items', then our software will calculate the most efficient taxation method so you pay little or no tax at all.

If you list it as 'own item' we will calculate tax payable as zero.

The report will tally with the 'total amount of sales' HMRC already has on you. It's up to you whether you report the sale as 'own item' or 'trading item'.

Our service is confidential, and we never report your private data to anybody, including HMRC.

Yes.

If you exceed 30 sales (or £1740) on any platform, that platform will send your data to HMRC.

So, for example, if say eBay, Vinted and Amazon send your data in, you would have been reported as having at least 90 sales.

HMRC will definitely write to you telling you to explain your sales/profit/loss etc.

It gets very confusing and if you make a mistake HMRC will be on to you. Sizeable penalties are in place for incorrect information and late filing dates.

Don't try figuring it out yourself, let our professional software do it for you.

Technically no...but...

If you sold over 30 items or your sales for the year exceeded £1740 then eBay (and every other platform you sold on) will send that data to HMRC.

So, let's say you sold 30 items, even if they are all your own items, HMRC now have that data and they may well write to you and ask you to explain your sales.

Remember their job is to collect taxes, so they'll write and ask you to explain yourself.

Have your numbers ready.

Our service helps you do this in a simple and affordable way.

Of course we would say yes, but there's a good reason...

Each year HMRC gets it wrong...a lot and it's very common for them to send a tax demand that is incorrect.

And now with AI doing all the heavy lifting it's easy to send tax demands out. So, the old phrase 'hope for the best, prepare for the worst' rings true.

Also, HMRC will certainly be writing to many sellers, just asking them to explain their sales irrespective of what you think (remember all platforms are now reporting you)

HMRC will want your data to tally with the data they received from the platforms.

Our service is only £39, it makes sense to get it and have peace of mind.

We sympathise with you, you're right it is confusing.

The quickest and easiest way to simplify it is to have your numbers organised.

Our simply spreadsheet/pdf method applies all the latest tax legislation and sorts all your numbers out into 'own items' vs 'trading items' and makes sure you are paying little or no tax.

If you sell regularly on Etsy and make over £1,000 in total sales across all platforms in a tax year, HMRC sees that as trading income. You’ll need to report it.

But if you only sell the odd handmade item now and then, you’re probably under the limit. Our Sole Seller Tax Summary shows you exactly where you stand.

More infor here in the FAQs Or more details in the full blog post here

Yes, it's perfect.

We do all the hard work on the sales numbers by isolating own sales from trading sales, then present the taxable numbers, The PDF summary is super clear, and your accountant will use the summary information in their broader service to you.

Of course, you don't need an accountant in most cases. Our summary is so clear you'll be able to fill in a tax return very easily.