If you have recently heard claims about a new tax targeting online sellers who sell their unwanted clothes, toys or other household items online, rest assured—that is just a rumour. HMRC has stated repeatedly that there is no new tax for people involved in casual online selling.
What has changed, however, is how online platforms will have to report the sales data to HMRC. So today, let us take a detailed look at what provisions have changed and who will be affected.
New Reporting Obligations for Digital Platforms
From January 2025, online marketplaces including eBay, Vinted and Airbnb will have to report sales to HMRC and partial personal data of the relevant transactions from online sellers that occurred in 2024. So, if you:
Sold more than 30 items
Earned more than approximately £1,700, or
Supplied a service for a payment, such as letting out a property on Airbnb
Your platform provider will notify you that a report has been made to HMRC because it is under a legal obligation to do so.
But it is important to note that this is not a new tax. These changes in reporting are part of updated regulations on digital platforms that took effect at the beginning of 2024.
What Does This Mean for Casual Online Sellers?
Online sellers who are selling their personal items on online platforms such as old clothes, outgrown toys or unwanted gifts, there is no reason to worry at all. In fact, the rules for online selling of personal items remain the same. Selling personal possessions does not count as income and thus no new taxes are designed for such activities.
However, the new data-sharing requirements may affect you, if your online activity meets the certain conditions outlined in the preceding sections. So, it is worth consulting an expert or contacting the online marketplace platform to understand just how much of your personal data will be shared with the authorities.
Who Might Need to Register for Self Assessment?
For online sellers, the sharing of sales data with HMRC does not automatically mean you need to complete a tax return. You may need to register for Self Assessment and pay taxes if you:
Buy goods for resale or make goods with the intention of selling them for profit
Provide services via an online marketplace
Make more than £1,000 per year from selling or providing services online, before deducting expenses.
The second point can further be broken down into the type of services. These services can include:
Providing deliveries
Renting out property, or
Providing professional services
Rumours of a new tax on selling personal items online are, well, just rumours and the casual online sellers need not worry at all. The updated reporting requirements simply mean digital platforms will provide HMRC with information about certain sales activities, enabling clearer tax compliance.
As an online seller, If your online activities qualify as trading or service provision, understanding your tax responsibilities is crucial. When in doubt, check HMRC’s resources or seek professional advice to ensure you stay compliant without unnecessary stress.
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