A reminder of the tax rules for online sellers
A reminder that the tax rules for how online platforms report seller information to HMRC changed on 1 January 2024. Digital platforms such as eBay, Vinted and Airbnb are required to collect and verify certain details about users who sell goods or provide services through their sites. This data is shared with HMRC.
In general, platforms will only report information where sellers have either sold around 30 or more items or earned approximately £1,725 (around €2,000) in a calendar year. If you meet these thresholds, your platform provider will usually notify you that your data has been shared.
Importantly, this reporting requirement does not automatically mean tax is due or that you need to file a tax return. Many people who simply sell personal belongings occasionally will have no tax to pay.
However, you may need to register for self-assessment and pay tax if you are trading rather than casually selling. This includes situations where you buy goods to resell, make items to sell for profit, or regularly provide services through online platforms. A key threshold to be aware of applied if you generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.
As has always been the case, genuine hobby sellers are not affected, but those running a business through online platforms should ensure they understand their tax obligations and keep accurate records. HMRC also provides guidance and tools to help individuals check whether their income is taxable.
