From January 2025, digital platforms operating in the UK were legally required to collect and report seller data to HMRC under the UK's implementation of the OECD Model Rules for Reporting by Platform Operators. As of 2026, HMRC has received two full rounds of this data. Here's what it means for anyone selling online.
Which Platforms Are Reporting?
Any platform that facilitates transactions between users — and has over 25 sellers earning more than €2,000 (approximately £1,700) — must report. This includes:
- eBay, Amazon Marketplace
- Etsy, Vinted, Depop
- Airbnb, Vrbo
- Uber, Deliveroo, Just Eat
- Fiverr, Upwork, TaskRabbit
What Data Are They Sending?
Platforms must report to HMRC: your name, address, National Insurance number (if they hold it), total amount received via the platform per quarter, and number of transactions. HMRC can now cross-reference this against your Self Assessment returns (or absence of them).
The £1,000 Trading Allowance
You can earn up to £1,000 per year from trading (selling goods, freelancing, etc.) without reporting it to HMRC. This is the Trading Allowance. If your total trading income exceeds £1,000, you must register for Self Assessment and report it — but you can deduct either the £1,000 allowance or actual expenses, whichever is higher.
Selling Personal Belongings vs Trading
Selling your own secondhand items (old clothes, furniture, gadgets you no longer use) is generally not taxable — you're not making a profit, you're recovering some of the original cost. Regularly buying items with the intention of selling them for profit is trading, which is taxable.
Frequently Asked Questions
Will HMRC automatically contact me if they see my platform income?
Potentially yes. HMRC has been sending "nudge letters" to individuals whose platform data suggests unreported income. These are not automatically penalties — they're prompts to check your tax position. If you receive one, it's worth reviewing your position with an accountant.
I earned £1,500 from Vinted selling old clothes. Do I owe tax?
Probably not — if these are your personal items being sold below their original purchase price. But if you regularly buy items specifically to resell for profit on Vinted, that's trading and the £1,000 allowance and/or Self Assessment applies.
Calculate your side hustle tax with our Side Hustle Tax Calculator.