HMRC is writing to about 6 000 individuals who it believes have earned income from sales through online marketplaces. The letters are being sent to those who have made more than 30 transactions with income of more than £2 000 from sales primarily relating to transactions made during the 2022-23 tax year with some from 2021-22. The aim is to prompt the individual to make a disclosure to bring their tax affairs up to date.
The letter explains that an individual who buys or makes goods to sell at a profit is likely to be trading and that income tax may be payable on any profits. It confirms that no tax will be due where total sales are less than the £1 000 trading allowance.
The letter states that people who are selling personal belongings from their loft or garage are ‘unlikely to pay tax’ although...
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