HMRC warning to anyone who sells items on eBay, Vinted or Etsy

HMRC has issued a two-week warning for millions of taxpayers to submit their self-assessment. If you are self-employed or have earned additional income outside of your main job, such as through a side hustle or selling items on second-hand websites like eBay or Vinted, you may need to file a self-assessment.

However, if you're selling items online, you must have made over £1,000 in one tax year and been trading for profit. Selling unwanted personal items or clothes from your home is unlikely to require tax payment.

The deadline for filing a self-assessment with HMRC is January 31, and late submissions will incur a £100 fine. If you haven't filed after three months, fines increase to £10 per day, up to a maximum of £900.

After six months, you'll be charged either 5% of the tax owed or £300, whichever is greater. This charge is repeated after 12 months.

Any tax due must also be paid by January 31 to avoid accruing 7.25% interest on late payments. After 30 days, an additional 5% of the unpaid tax will be fined, with this being repeated at six months and 12 months, reports the Mirror.

On January 6, HMRC warned that 5.4 million people had yet to file their self-assessment tax return. Those who still need to act can submit their tax returns and pay any tax owed online at GOV.UK.

Taxpayers finding it hard to settle their tax dues and owing less than £30,000 could take advantage of HMRC's payment scheme dubbed 'Time to Pay'. To be eligible, you must not have outstanding debts or arrangements with HMRC, ensure your tax returns are current, and request assistance no later than 60 days following the payment deadline.

Myrtle Lloyd, Director General for Customer Services at HMRC, advised: "The self-assessment deadline is fast