Q: I sometimes sell unwanted items online. Am I now liable to pay tax on any money I make?
A: There has been a rise in recent years of people selling old and unwanted items, particularly on digital platforms. If you do this on a casual basis, it is unlikely that you will need to pay any tax. The exception to this is if you sell a single personal item or collection for over £6,000 – HMRC will need to be informed to see if you need to pay Capital Gains Tax.
Some people buy and sell regularly on these platforms and HMRC considers that ‘trading’. However, if you make less than £1,000 a year, there is no tax due. If you’re making over that amount, HMRC will need to be informed. It is worth noting that online platforms are now obliged to share information with HMRC if you sell 30 items or more per year. But again, if you make less than £1,000 a year, you will not have to pay tax on it.
