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The taxman is coming for your resale side hustle

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London, UK
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Those looking to make a buck through resale platforms including Vinted, eBay, and Depop will now have their earnings taxed by HMRC. Can we have anything at this point?

So, you wish to supplement your national insurance contribution, rent, road tax, pension, student loan, and eye-watering living expenses with a simple side hustle? How embarrassing.

The UK’s greedy hand will soon extend to resale apps like Vinted, eBay, and Depop as part of a HMRC crackdown dubbed the ‘side hustle tax.’ Don’t shoot the messenger.

The nation’s tax authority has demanded that these platforms routinely report their seller information, with the first obligatory deadline slated for the end of January next year. Yes, you’ve got 12 months. That’s about all the good news to be gleaned here.

Specifically, the government is looking to rifle through our tax IDs, bank account details, and number of transactions made as an active seller. Whether you’re selling garments on Vinted, or a second-hand Car on eBay, the Tories want to know about it.

A crucial stipulation to note is that all users will be granted a £1,000 allowance as ‘trading income’, but anything over this threshold will be taxed. Basically, don’t shoot for the stars and you’ll be just fine. Perhaps sell that unwanted sofa for £999 just to be safe.

The OECD (Organisation for Economic Cooperation and Development) also claims that those who record fewer than 30 transactions may not have to fill out a tax return, so long as a seller has generated less than £1,735 for the year.

The rules are muddy at best, but seniors from the respective resale companies are expected to clarify the details throughout 2024.

Adam Jay, chief executive of Vinted, recently explained to the BBC: ‘It’s actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information.’

‘It’s only those people who are making a profit from selling second hand items that might be eligible for tax,’ he said. ‘We’ll be actively reaching out to those sellers explaining what the new requirements are and why they exist.’

Unsurprisingly, those faced with the prospect of having their extra-circular businesses stunted aren’t exactly thrilled. Especially, younger would-be entrepreneurs.

After all, the modern concept of the ‘side hustle’ was essentially made mainstream by Millennials and Gen Z as a way of supplementing our financial woes.

Amid a worsening cost of living crisis – particularly in the UK, where tax rates are also high – a considerable portion of the Gen Z cohort are concerned that we may never even own a property.

Meanwhile, it appears that any attempt to craft a brighter future merely conjures pound signs in the eyes of opportunist billionaires and multi-millionaires. It’s incredibly frustrating.

Everyday citizens aiming to generate a few extra thousand pounds a year are now under HMRC’s microscope, while parts of the richest 1% continue to evade tax through offshore accounts, ‘shell’ companies, and shady real estate schemes. Seems fair.

Unelected officials pushing through changes nobody asked for. Funny sort of democracy, eh?

Happy New Year!

Tech Editor London, UK

I’m Jamie (He/Him), the Editor in Chief at Thred. Keeping up with gaming and revolutionary technology is my forte, but when away from my keyboard, you’ll probably find me wrapped around a large Tango ice blast at the latest mediocre horror flick. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.

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