By Rebecca Rutt For Thisismoney. Millions of people who rent our their homes on holiday rental sites like Airbnb or sell items or services on websites such as eBay and Etsy could see lower tax bills from These 'digital tax breaks' aim to recognise the rise in the sharing economy and so called 'micro-entrepreneurs'. They spell good news for Britain's bedroom money-makers who will no longer have to navigate the tax system for relatively small profits.

It is now easier than ever before for people to make money online but the current tax laws can be 'daunting and complex' the Chancellor said.

Do I have to pay tax on stuff I sell on eBay? - Business - Answer Desk | NBC News

This includes those who make money from occasional jobs such as babysitting, providing a lift share or sharing power tools and those making money from renting out their driveways or loft storage. The Chancellor said new tax breaks will benefit around , people in the UK.

While those earning over this amount can deduct the allowance from their earnings through a self assessment tax return. They must then pay tax on the rest of their profits. Exact details of which companies will be included and how the tax allowance will work have not yet been published. The only way to benefit from both would be if a room was rented out which met the requirements of the rent-a-room tax rate and then the homeowner claimed through the property tax relief for renting out another part of their home - such as a driveway.

Letitia Valentine makes extra money by renting her drive out and will benefit from the new tax break. Living next to Peterborough railway station, she says the spaces are occupied about 80 per cent of the time. The Government estimates that , people are likely to be included - the majority of which are currently paying the basic rate of tax. The rival bigger tax break for renting out rooms. Although to benefit you must let furnished residential accommodation in your only or main home.

Airbnb has welcomed the announcement and in a blog it said: A spokesperson for eBay said: For those selling goods online through websites such as eBay - the current rules state that if you are selling regularly you may have to pay tax.

Do I have to pay tax on stuff I sell on eBay? - Business - Answer Desk | NBC News

This means you should be filing a tax return on the items and paying tax on any profit you make. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline.

To do this we will link your MailOnline account with your Facebook account. You can choose on each post whether you would like it to be posted to Facebook.

Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy. One million early retirees can benefit from little-known loophole How holiday firms hike prices when they know you'll pay up: Surge pricing adds hundreds to the cost of your trip Top seaside hotspots revealed: The teacher, accountant and receptionist who owe thousands they will struggle pay off DAN HYDE: Britain has been ambushed by a debt crisis, we need to get back in the black The 50 facts you never knew about cash machines UK and European stocks open lower as sentiment turns after record highs earlier in the week The supermarket revolution to fight off Amazon: Expert warns households against persuasive cold callers after he was stung himself No cover if your passport is lost on holiday: Our guide shows how to make equity release work 'My friends, family and even my doctor told me to give it up': Renewable energy deals don't have to cost the earth: Steve Webb replies Asking prices fall in June for the first time since but sales are up, so what is happening to the property market?

Should you take out wedding insurance for your big day? Policies cover illness and caterers going bust - but not cold feet or bad weather Safe and sound: The tax break for making money on the side: RELATED ARTICLES Previous 1 Next.

Share this article Share. Share or comment on this article e-mail Most watched Money videos How to get out of your credit card debt Instant karma!: Thief stopped by lorry driver's quick thinking The new Nissan Qashqai will be in the showrooms from next month Jaguar Land Rover teases the opening of its classic car tour Investing Show: Are stockmarkets too expensive?

Rolls-Royce showcases its bespoke capabilities in stylish car Unsettling digital safety advert will make you think twice online The world's largest luxury car 'Vending Machine' in Singapore Is this the best car used advert ever? Vitara gets CGI treatment Footage showing the amazing evolution of the Porsche Carrera Check out this high speed LEGO Porsche crash Video shows British girls standing NAKED in the centre of Magaluf.

A Tax Filing Factsheet for eBay Sellers - TurboTax Tax Tips & Videos

How holiday firms hike prices when they know you'll pay The middle class borrowers sitting on a debt timebomb The 50 facts you never knew about cash machines Why banks could block your payments if you try to swipe a Bank of England Governor Mark Carney says 'now is not the Britain has been ambushed by a debt crisis, we Extra Energy can't decide if I'm in debt or No cover if your passport is lost on holiday: Sort code swap for one million bank customers as part UK car industry calls for interim safeguards as fears Squeeze cash out of your home for retirement The supermarket revolution to fight off Amazon: Finally a banker is dragged to court over Plus-size retailer N Brown to close up to five branches MOST READ MONEY Previous.

Comments 8 Share what you think. Post comment to your Facebook Timeline What's This? Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. Search All Articles Share prices.

Portfolio Newsletter Guides Savings rates Deals Calculators. SMALL BUSINESS SERVICES Bank accounts Savings accounts Business Loans Credit cards Business energy Money transfer.

MORE SMALL BUSINESS DEALS. DON'T MISS Our home is in my name only - if we get a buy-to-let can we avoid the extra stamp duty by putting it in my wife's name? Why interest rates will soon rise as the Bank of England plays follow the leader ALEX BRUMMER. Sarah Beeny heads to Hull to pick her bargain home of the month. My cat has diabetes and I can't afford her pricey medication but I can't bear to have her put her down, what can I do?

Can you guess the prices of these beach huts for sale? Simple conversion that could turn our 7. Tesco sales climb as price cuts tempt back inflation-hit customers Every little helps. Norfolk is the capital of dating scams while Surrey residents are the most likely to be duped by fake investments Fraud hotspots revealed.

Households could see a shock energy bill rise as 54 fixed energy tariffs expire soon Are your power payments set to soar? The best new cars for different drivers revealed The motors that won gongs for families, new drivers and lugging caravans.

Housing market stagnates in May as buyers stay away Home sale valuations down to less than a third of the market. Will your mobile phone insurance REALLY work? How some don't pay if you lose your phone and others only offer refurbished handsets. Is a rate hike closer than we thought?

Pound jumps as inflation fears split Bank policymakers. Interest rates held at 0. DON'T MISS I am considering taking a job as a delivery driver - what are my rights in the gig economy?

From DIY to professional help Sponsored. Small business top five. BUSINESS GUIDES DON'T MISS VAT rules are set to change post Brexit: Unusual places to stay are all the rage SIR JAMES DYSON How to come up with a great invention and then protect your idea from copycat cheats How to write a business plan to tempt lenders or investors A practical step-by-step business plan formula Crowdfunding, venture capital, angel investing?

Five top pension planning tips for the self-employed Tips on how business owners should build their fund Six tricks to get your business noticed Charlie Mullins' Pimlico Plumbers has a reputation for being head-and-shoulders above the rest when it comes to marketing Five of the best current accounts for start-ups with interest, overdrafts and perks Which banks are offering the lowest fees, in-credit interest and best free perks?

Has your small business been rejected for big bank funding? How do you go about protecting it? Find out in our guide.

Sitemap Archive Video Archive Topics Index Mobile Apps Screensaver RSS Text-based site Reader Prints Our Papers Top of page Daily Mail Mail on Sunday This is Money Metro Jobsite Mail Travel Zoopla.