Earlier this year there was a lot of misinformation circulating about a new tax for people selling their unwanted clothes or children’s toys, etc. online. This is not right. There is no new tax for online selling.
What has changed is the way that online platforms that people use to sell goods and services report information to HM Revenue and Customs (HMRC).
Digital platforms must share sales data and some personal information for 2024 with HMRC by the end of January 2025. If you have sold at least 30 items or earned roughly £1,700 (equivalent to €2,000) using platforms like eBay or Vinted, or provided a paid-for service such as a holiday rental through Airbnb on a website or app in 2024, your platform provider will let you know that your information has been shared with HMRC.
The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax. Whether you are selling last year’s festive jumper, clearing out a child’s outgrown baby clothes or quietly offloading an unwanted Christmas present or two – nothing has changed for online sellers.
The sharing of sales data does not automatically mean you need to complete a tax return, however you may need to register for Self Assessment and pay tax, if you:
- buy goods for resale or make goods with the intention of selling them for a profit
- offer a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
- AND generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year
If you are unsure whether your additional income could be taxable, you can read our guidance and use our free checking tool.