A MAN has sparked controversary after he shared a video of himself clearing the shelves of discounted items to sell on for profit.
Tom who describes himself as being on a ‘wealth journey’ took to social media to share details of his “retail arbitrage”.
Retail arbitrage just means reselling a product on for profit.
It is completely legal in the UK, as, once you own an item, you have the right to resell it.
In the video, Tom and his friend Sam, can be seen heading to the reduced aisle in Boots.
He picked up some Soap and Glory products that had been reduced to a fiver, and scanned them, using an app called BuyBotGo.
The app told him that the product was selling for £14 on Amazon, meaning that after fees he would get £2.71 profit from each resale.
Tom and Sam each loaded a bag with the products and then took them out to the car.
The pair said that they would make £76 profit, from selling 30 units of the product on Amazon.
“Not complaining, five minutes in and out for £75.
“I used to earn that in a day”, Sam said.
The pair then headed to TK Maxx to look for more discounted products.
Tom will make profit on the items by reselling them using Amazon FBA.
Amazon FBA is a service that online sellers can use, where Amazon takes care of the storing, packing and shipping of your products.
So all Tom will have to do is send the products off the Amazon and wait for the money to roll in.
Tom’s video, which was posted under the username @tomfba, has likely left any open-mouthed, has racked up over 768,000 views on TikTok.
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income – but you need to know the rules.
When you’re employed the company you work for takes the tax from your earnings and pays HMRC so you don’t have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: “Caution should be taken if you’re earning an additional income, as this is likely to be taxable.
“The side hustle could be treated as taxable trading income, which can include providing services or selling products.”
You can make profit of up to £1,000 a year tax-free via the trading allowance, but over this and you’ll usually need to pay tax.
Stephen added: “You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
“The applicable tax bands and the amount of tax you need to pay will depend on your income.”
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe – plus extra fees on top.
Social media users raced to the video’s comments section to share their thoughts.
Many people were critical of Tom’s money making method.
One person said: “Depriving regular consumers. Well done.”
Another person said: “Pathetic”.
A third person said: “Is this not a crime?”
However, other’s were supportive of Tom’s entrepreneurial skills.
One person said: “Love it”.
Another person said: “Well done boys, keep going”.
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