A reminder of the tax rules for online sellers

by Aitch, posted in Income Tax

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.

Source:HM Revenue & Customs | 01-06-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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