New reporting requirements for digital platforms – such as eBay and Airbnb – came into effect at the start of 2024, and from January 2025 these sites will begin sharing some user sales and personal data with HM Revenue & Customs (HMRC).
Although these reporting requirements have caused concern, HMRC have confirmed that there are no changes to the tax rules for someone selling unwanted possessions online[1].
Angie MacDonald, who is 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.”
HMRC have advised that anyone who sold at least 30 items, earned roughly £1,700, or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say that their sales data and some personal information will be sent to HMRC owing to new legal obligations.
This does not mean that an individual automatically needs to complete a tax return. However, if the following applies then you would likely need to register for Self-Assessment (if you are not already registered) and pay tax.
- Buying goods for resale or making goods with the intention of selling them at a profit; or
- Offering a service through a digital platform – such as delivery driving or letting out a holiday home; and
- You generate a total income before deducting expenses of more than £1,000.
If you are concerned about whether you are likely to need to register for Self-Assessment or you are unsure about any tax liabilities arising as a result of your use of an online platform, we can discuss your circumstances in more detail with you.
HMRC recommends that anyone who regularly sells goods or provides a service through an online platform, should find out more about selling online and paying taxes on GOV.UK.
For help and support with Self-Assessment or personal tax matters, contact our team of advisers today.
[1]https://www.gov.uk/government/news/no-tax-changes-for-online-sellers
