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Online platforms – new reporting requirements from January 2025

Online selling platforms (such as eBay and Airbnb) will be required to collect and report seller information to HMRC from January 2025. The introduction of these new reporting requirements enables HMRC to more easily correlate data from online sales with tax returns and identify cases where returns have not been made.

An increased focus on online sales and reporting requirements has triggered uncertainty amongst sellers as to whether their obligations have changed and a new tax has been introduced. HMRC’s recent update clarifies the situation and offers confidence for online sellers, it has been confirmed there are no changes to tax rules for people selling their unwanted possessions online. If you are not trading and just selling unwanted items online, no tax is due.

However, if selling online you need to consider if you are trading, which is the same for anyone selling goods.

The impact of new reporting requirements

Online sellers who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to the new legal obligations.

The sharing of this data does not necessarily mean you have to pay tax.

Paying tax and registering for Self Assessment

You may need to register for Self Assessment and pay tax if the following apply:

  • You buy goods for resale or make goods with the intention of selling them for a profit; and/or
  • You offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website; AND
  • You generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.

How M+A Partners can help

Our experienced tax team are able to advise on your tax and Self Assessment obligations, ensuring you receive clear guidance on your tax responsibilities.

To find out more about how we can help, get in touch with me using the details below.

Written By

Mary-Anne Sargeant
Partner
BIO
Mary-Anne joined M+A Partners in 2003 and was made a Partner in the firm in 2006. Mary-Anne and her team are based in our Attleborough office and provide professional accountancy and tax advice for a wide range of clients, from brand new start-ups to well-established family and owner-managed businesses and from private individuals to sole traders, partnerships and corporate clients.

Mary-Anne is a Chartered Tax Adviser and Chartered Accountant and was placed top in the UK when she undertook her Chartered Institute of Tax exams. She is committed to building lasting relationships with clients, based on gaining a clear understanding of their current and future business needs and taxation issues.

With over 20 years’ experience within the profession, Mary-Anne has the knowledge and experience to provide a portfolio of accountancy and taxation services that support the establishment and ongoing development of a business. Working closely with clients to understand their immediate and long-term requirements, she gives knowledgeable advice that caters to each unique set of circumstances.

Mary-Anne provides guidance on all aspects of accountancy and tax, from deciding on the best business structure; making the move to self-employment; setting up a limited company and guiding clients on both how they work as well as their pitfalls; optimising personal and business tax reliefs; assisting with tax planning for private individuals and companies; to of course dealing with the preparation of accounts, tax returns and VAT returns.
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