Side Hustles and HMRC
Chrissy Leach • 10 February 2025
What Information Does HMRC Receive from eBay, Etsy, Vinted & Other Online Platforms?
If you sell on platforms like eBay, Etsy, Vinted, or Amazon, you may have heard that HMRC is increasing its scrutiny of online sellers. This has led to some confusion, with many wondering if the tax rules have changed. The rules around declaring income haven’t changed—but HMRC is now receiving more data than ever from these platforms.
What Information Is Shared?
Online selling platforms must report seller information to HMRC under new international rules designed to improve tax transparency. These platforms will share details about:
- Your total sales and transactions
- How many items you’ve sold
- The bank account linked to your payouts
- Your name, address, and tax identification details
If you sell regularly or earn significant amounts, HMRC will be able to see this and may contact you if they believe you should be paying tax.
Have the Tax Rules Changed?
No—the tax rules haven’t changed. The UK has always required individuals to declare income from self-employment or business activities. What has changed is HMRC’s access to data, making it easier for them to identify sellers who may not be complying with the rules.
If you’re selling items occasionally, such as clearing out unwanted clothes or second-hand goods, you won’t need to pay tax. But if you’re running a business—buying items to resell, making products for sale, or selling regularly with the intent to make a profit—you may need to declare your income.
There is a £1,000 trading allowance which means you can earn up to £1,000 of gross income (before deducting any costs) tax-free each year. If you earn more than that, you’ll need to declare and pay tax on the profits.
What Should You Do If You Think You Owe Tax?
If you realise that your online sales meet the criteria for taxable income, the best thing to do is act now.
- Register for Self-Assessment
- Keep accurate records – Track all your sales, expenses, and profits. Most platforms provide sales reports, but it’s a good idea to keep your own records too.
- Submit your tax return on time – The deadline for online submissions is 31 January following the end of the tax year. Late returns or unpaid tax can result in penalties.
Need Help With Your Taxes?
If you’re unsure whether your sales count as trading or need help with your tax return, CJL Accountancy is here to help. We specialise in supporting small businesses, self-employed individuals, and online sellers.
Get in touch today for expert advice on staying compliant and keeping your tax affairs in order!
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