HMRC has issued a fresh warning to anyone who’s made at least £1,700 from selling items online.
From January, online platforms like eBay, Vinted, Airbnb and Just Eat will start sending records of your income directly to the taxman.
It means anyone earning £1,700 or more from online selling platforms could find themselves with a most unwelcome letter on their doormat from His Majesty’s Revenue and Customs (HMRC).
You may also receive a letter if you sold at least 30 items online, or provided a paid-for service on a website or app in 2024.
HMRC has said this does not automatically mean that any tax is due, nor is it a change in tax rules, it is simply due to new reporting requirements for digital platforms.
Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “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.”
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
AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year
If you regularly sell goods or provide a service through an online platform, HMRC recommends that you check the guidance about selling online and paying taxes on GOV.UK.
A link will also be available on the HMRC app in the ‘news’ section under the ‘communication’ tab to help you decide if your activity should be treated as a trade and if you need to complete a Self Assessment tax return.
