Online platforms, including eBay, AirBnB and Amazon, will start sharing information about sellers and their earnings with HMRC from the end of January 2025, although the UK tax body has made clear that the online selling tax rules have not changed.
HMRC has confirmed that there are no changes to tax rules for people selling their unwanted possessions online. The reminder comes as online platforms will start sharing sales data with HMRC from January 2025 - a new process that was announced last year.
Some of the biggest digital sales platforms affected include Amazon, eBay, Etsy, Vinted and Depop. Websites that advertise goods but that don't handle sales, such as Gumtree, are exempt.
Online selling tax rules don't just cover product sales - you could be affected if you rent out a room on AirBnB, or provide a food delivery or taxi ride service.
The information shared will include the names, addresses and dates of birth of sellers, details of their earnings (as well as property details for lettings) and their bank account numbers. It will include online sales that were made in 2024.
Anyone who is unsure if their additional income could be taxable can check the rules on the GOV.UK website, use HMRC's free online tool or download the HMRC app for more information.
"We cannot be clearer - if you are not trading and just occasionally sell unwanted items online - there is no tax due. As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self assessment." Angela MacDonald, HMRC's second permanent secretary and deputy chief executive officer.
Tax rules for online sellers
Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024, will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations. The sharing of sales data does not automatically mean the individual needs to complete a tax return.
Those who may need to register for self assessment and pay tax, include those who:
- Buy goods for resale or make goods with the intention of selling them for a profit;
- Offer a service through a digital platform - such as being a delivery driver or letting out a holiday home through a website;
- However, they must generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.
Written by Rachel Miller.