Martin Lewis explains 'side hustle tax' after social media confusionThe Martin Lewis Money Show Live, ITV
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00:00 I had some woman got in touch with me on social media,
00:03 worried because she was selling her old baby stuff
00:05 and for a couple of hundred quid,
00:07 because the baby had now grown out of it, I'm going to be taxed.
00:09 No, you are not going to be taxed.
00:12 Selling your old stuff, doing the clear-out,
00:14 is not a taxable event.
00:16 Tax is only due for those who are trading.
00:20 That's the word, which means making or buying goods
00:24 with the intent to sell them at a profit.
00:27 Common parlance, doing a bit of a business or a side hustle.
00:31 That is taxable.
00:32 And even if you are trading,
00:33 you can sell turnover of around £1,000 a year,
00:36 it has to include platform fees, without any tax.
00:39 If it's above that, then you are,
00:42 and you've always been eligible to pay tax on the profits.
00:46 Nothing's actually changing, they're just reporting a bit more.
00:49 So if you weren't declaring when you should have declared,
00:51 it may be an issue, but most people just doing the clear-out,
00:53 forget it, carry on.