HMRC issues two-week warning to anyone selling on Vinted or eBay – check if you need to act NOW

With just two weeks until the self-assessment deadline, HM Revenue and Customs (HMRC) is urging millions of taxpayers to file their tax returns.

As well as completing the paperwork, Brits must also pay any tax due by January 31 or risk paying a fine.

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This can include people who sell items online through platforms such as eBay and Vinted.

For example, you may need to register for self-assessment and pay tax if you earn more than £1,000 before deducting expenses via:

• purchasing goods for resale or manufacturing goods with the intention of selling them for profit
• offering a service through a digital platform – such as being a delivery driver or renting a vacation home through a website

The IRS says more than 7.4 million people have already filed their returns for the 2023 to 2024 tax year, but there are still millions of people who have not yet filed their returns.

On January 5, HMRC said more than 5.4 million people still needed to submit.

Anyone who misses the deadline faces a late payment penalty of £100, even if they owe no tax. For people who have a bill to pay, fines will increase if the money is not transferred on time.

The penalties for late filing tax returns are as follows:

• an initial fixed penalty of £100, which applies even if there is no tax due, or the tax due is paid on time
• after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
• after 6 months, an additional penalty of 5% of the tax due or £300, whichever is greater
• after 12 months, an additional fee of 5% or £300, whichever is greater

If you miss the January 31 deadline to pay the bill, you face additional fines of 5% of the unpaid tax at 30 days, 6 months and 12 months. Interest will also be charged on the amount owed.

HMRC is urging people who think they may need to complete a return online to act now and use the wide range of support available.

Myrtle Lloyd, general manager of customer services at HMRC, said: “The self-assessment deadline is fast approaching, don’t leave completing your tax return to the last minute. »

Urgent warning for people selling online

A significant area of ​​concern is for online sellers, who may not realize they need to file a return or pay taxes.

And the rules have changed this year, meaning platforms like Vinted or eBay must alert HMRC of sellers who make more than 30 transactions a year or sell goods worth more than £1,700.

This doesn’t mean you’ll automatically have to pay taxes, it depends on what you’re selling and why.

And even if you don’t meet these thresholds, you may need to file a tax return if you sell things to make a profit, or if you sell things you made – and you earn more than 1,000 £ per year.

Anyone who regularly sells goods or provides a service through an online platform can learn more about taxation. here. This should help you decide whether your business should be treated as a trade and whether you should complete a self-assessment tax return.

Angela MacDonald, second permanent secretary and deputy chief executive of HMRC, said: “We couldn’t be clearer – if you don’t trade and occasionally sell unwanted items online – there is no tax to pay.

“As has always been the case, some people who trade on websites or sell services online may need to pay tax and register for self-assessment.”

The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and, whether selling personal items on eBay, renting accommodations on Airbnb or to deliver takeaway food via Just Eat, no tax rules have changed.

How to file your tax return

If you are new to self-assessment, you must register before you can apply. You should do this as soon as possible, as it can take up to ten days to receive your Unique Taxpayer Reference (UTR).

This is the code you need to access HMRC online services or the HMRC app. Without it, you will not be able to file your return and your tax payment will be late.

HMRC provides free, easy-to-access resources on GOV.UK to guide people through the filing process, including detailed support and advice, webinars, helpsheets and YouTube videos.

Here are some of the main sources of support available:

• HMRC’s digital assistant helps you find information or request to speak to an advisor.
• Guidance notes and help sheets explain exactly how to complete your return
• YouTube the videos provide a wealth of information if you get stuck or confused.
• Live Webinars where you can ask questions or, if you can’t attend, you can watch recorded webinars on demand.
• HMRC app And Personal tax account – instantly find your unique taxpayer reference, make a self-assessment payment, get your National Insurance number and get your employment income and background for your tax return.
• HMRC Online Services – you can find your tax calculation, your statements, your previous tax returns and complete your tax return online which includes help and support at each stage.

If you need further help with your taxes, you can contact a voluntary or community sector organization or get help directly from HMRC.

Should I make a return?

You may need to file a return if you:

• you are newly self-employed and have earned a gross income of more than £1,000 in the tax year
• earned less than £1,000 but want to voluntarily pay class 2 national insurance contributions to protect your state pension or access to other benefits
• are a new partner in a business partnership
• have received untaxed income in excess of £2,500
• receive child benefit and have to pay high income child benefit because you or your partner earned more than £50,000

If you used to self-assess but think you no longer need to file a return, for example because you now work full-time for an employer, you should notify HMRC using this form. online form.

How to pay my tax bill

You can pay any tax due via the HMRC app or online via the gov.uk website.

How much time you need to allow depends on how you pay. You can transact same or next day via your online banking account, online banking or over the phone using faster payments, by CHAPS, debit card, or with your bank or building society .

If you pay by BAC, direct debit or check, you will need at least three working days for payments to be made. If this is a new direct debit, you will need five working days.

You can pay the amount you owe in installments before the deadline, if you prefer. You can do this by setting up weekly or monthly payments on your bill or making one-off payments through your online banking account, using online or telephone banking (faster payments), setting up direct debits unique or by sending checks.

You can get help if you can’t pay your taxes on time.

Meanwhile, more than three million households owe a combined total of £544m council tax rebates, according to a Sun investigation.

The average refund The amount owed is around £178, but some could be owed as much as £3,659.

You can check if you are eligible for a tax refund using The tool of the Sun.

Elsewhere, a financial expert explains how Britons can get up to £6,139 back in 2025, including tax on payments.