A MAN has caused outrage after revealing he makes £250 an hour by reselling products he buys from Tesco.
Known only as @aftermarketarbitrage online, the man shared details of his money making scheme via a video posted to TikTok.
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, he can be seen grabbing a basket and piling it high with calculators.
He said that the calculators are on sale at Tesco for just £7, but, using an app called BuyBotGo, he was able to determine that they sell for £18 on Amazon, giving him £6.24 profit after fees.
He said that over 2600 of the calculators have sold on Amazon in the past month, meaning he is almost guaranteed to get his money back.
In the video, the man can be heard saying “someone’s gonna be so p****ed of with this”, whilst stacking his basket high and laughing out loud.
He said: “I made sure to grab all of them”.
The seller then drove to another Tesco, 10 minutes a way and found even more calculators to buy.
These calculators cost £15, but are selling for £33 on Amazon, meaning that he will make more than £10 profit from each calculator after fees.
“£70 of profit just like that”, he said, loading his basket with seven on the calculators.
The TikToker revealed that it took him about 45 minutes to pick up the calculators from the store and another 20 minutes to pack them up.
He revealed that he made around £250 of profit for just an hour of work.
The man 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 he will have to do is send the products off to Amazon and wait for the money to roll in.
The video has likely struck a chord with many users, as it has gone viral, racking up over 64,000 likes on the video sharing platform.
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.
TikTok users raced to the video’s comments section to share their thoughts, and many were not impressed.
One person raged: “You’re making money off kids buying calculators for school”.
Another person said: “This is just sad”.
A third said: “All fun and games until no one buys them”.
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