Last updated: 14 October 2026
What do HMRC’s digital platform rules mean for online sellers?
Since 1 January 2024, online platforms such as eBay, Vinted, Etsy, Airbnb and Uber must collect information about sellers and report their income to HMRC each year, with the first reports sent by 31 January 2025. This doesn’t create a new tax. It helps HMRC find people who are trading but not declaring income. If you’re only selling your own unwanted things, you usually have no tax to pay. If you buy to resell, make items to sell or provide services, you may be trading and need to tell HMRC.
What platforms report
- Your name, address, date of birth and National Insurance number or UTR
- Your total sales and fees for the year
- For property lets, the address and number of nights
Platforms don’t need to report sellers with fewer than 30 sales and under about £1,700 (€2,000) of sales in a year, but that’s a reporting threshold, not a tax-free limit.
Selling or trading?
| Activity | Usually trading? |
| Clearing out your own clothes and household items | No |
| Buying items to resell at a profit | Yes |
| Making and selling crafts regularly | Yes |
| Renting out a room or home through a platform | Property income |
| Driving or delivering through an app | Self-employment |
HMRC looks at factors such as how often you sell, whether you bought items to resell, and whether you make or modify items.
The £1,000 trading allowance
If your gross trading income is £1,000 or less in a tax year, it’s tax-free and you don’t need to report it. If it’s over £1,000, register for Self Assessment and either claim the allowance or deduct your actual costs.
Example
Jess makes and sells candles on Etsy, with £6,500 of sales in 2026/27 and £2,800 of costs for wax, packaging and fees. Etsy reports her sales to HMRC. She registers for Self Assessment by 5 October 2027 and reports a £3,700 profit, which she claims instead of the £1,000 allowance because her costs are higher. Her friend sells £900 of her own old clothes on Vinted at a loss. That’s not trading, so there’s nothing to report.
Selling valuable personal items
Selling your own belongings can create Capital Gains Tax, but only on items sold for more than £6,000 each that have gone up in value. Most second-hand sales are at a loss.
If you haven’t declared before
If you’ve been trading online without telling HMRC, you can use its digital disclosure service. Telling HMRC before it contacts you usually means lower penalties.
Keep simple records
Keep a list of sales, the date and price of each item, and receipts for what you bought to make or resell. Platform statements help, but they show sales and fees, not your costs, so they aren’t enough on their own to work out profit.
Frequently asked questions
Will I get a letter from HMRC?
Possibly, if platform data suggests undeclared income.
Can I see what the platform reported?
Platforms must give you a copy of the information they send.
Do I need to register for VAT?
Only if taxable sales exceed £90,000 in 12 months.
Are Airbnb hosts affected?
Yes, letting income is reported too.
Related: online seller tax rules, HMRC and Airbnb landlords and registering for Self Assessment.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with tax for online sellers. See our small business accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
