15 Sep 2025
If you sell goods or services through an online platform such as eBay, Vinted, Etsy or Airbnb, it is important to understand that new reporting rules now apply.
From 1 January 2024, digital platforms have been required to collect information on their users' sales. If your total income through a platform is more than £1,000 in a calendar year, the platform must pass those details to HMRC.
The first reports covering the period from 1 January to 31 December 2024, were submitted to HMRC by the end of January 2025. This means HMRC already has details of online sales income for 2024 and will continue to receive this data annually from now on.
WHAT COUNTS AS INCOME?
- Examples of activity that may need reporting include:
- Buying and reselling items online
- Making things to sell such as crafts or clothing
- Providing services such as tutoring, repairs, dog walking or delivery work arranged online
- Creating digital content such as video channels, podcasts or social media influencing
- Renting out property or land including holiday lets and parking spaces
THE £1,000 ALLOWANCE
There is a tax-free allowance of £1,000 each year for casual trading or property income. If your total sales or receipts are above this limit, you must register with HMRC and report the income on a Self-Assessment tax return.
WHY THIS MATTERS
As platforms are now obliged to disclose sellers' details, HMRC will be able to check more easily whether individuals are meeting their tax obligations. Failure to declare taxable income could result in penalties and interest.
As the 2024 numbers are already in the possession of HMRC, care should be taken to consider your reporting options for the tax year 2024-25.
NEXT STEPS
If you earn income online, it is important to:
- Keep clear records of all sales and related costs
- Check whether your total receipts exceed the £1,000 allowance
- Register for Self-Assessment if required
- Seek advice if you are unsure whether your activity counts as trading
CALL TO ACTION
If you are earning online income and are not sure how these changes affect you, please get in touch. We can help you review your position and make sure you stay compliant.
If you feel this alert could help a business colleague or family member, please feel free to share it with them.
We can help
If you need assistance with any issues raised in this Broadcast, please call us on 01753 888211 or email us info@nhllp.com. We are here to help.
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