HMRC gets your eBay, Etsy and Airbnb data now — is your side hustle still safe from tax?

The era of unreported side hustle income is effectively over. Under HMRC's implementation of the OECD's Model Reporting Rules for Digital Platforms, all major online selling and gig platforms must now send HMRC a report of every seller's annual income. This applies to eBay, Etsy, Vinted, Airbnb, Uber, Deliveroo, Fiverr, and any similar platform.

But this does not mean all side hustle income is taxable. The rules are more nuanced than the headlines suggest.

The £1,000 trading allowance — still your main protection

The most important number for anyone with a side hustle is £1,000. Under HMRC's Trading Allowance:

• If your total gross side hustle income (before expenses) is £1,000 or less in a tax year, you pay no tax on it and do not need to register for Self Assessment or declare it to HMRC
• If your total gross income exceeds £1,000, you must declare it through Self Assessment — and you can either deduct the £1,000 allowance or deduct actual expenses, whichever is higher

The £1,000 allowance applies across all trading income combined — not per platform. If you earn £600 on eBay and £500 on Etsy, your combined trading income is £1,100 and you must register.

What HMRC can now see

Digital platforms submit annual reports to HMRC showing:

• Your name and address
• Your National Insurance number (or other identifier)
• Total sales proceeds or fees received in the calendar year
• The platform's own details

HMRC will cross-reference this data with its own records. If you are earning above the £1,000 threshold and have not declared it, HMRC will write to you — and the penalty for deliberate non-disclosure can be up to 100% of the tax owed.

Which platforms report to HMRC?

Any digital platform that enables users to earn income is required to report. This includes but is not limited to:

• Selling platforms: eBay, Etsy, Vinted, Depop, Amazon Marketplace, Facebook Marketplace
• Short-term lettings: Airbnb, Booking.com, Vrbo, SpareRoom
• Gig economy: Uber, Deliveroo, Just Eat, Fiverr, Upwork, TaskRabbit
• Freelance platforms: PeoplePerHour, Bark, Bark

Important: selling personal possessions is different

If you are selling your own second-hand personal possessions (old clothes, unwanted gifts, household items), this is generally not taxable as trading income. Selling your old belongings is a capital disposal, and personal chattels (items for personal use) with a value of £6,000 or less are exempt from CGT.

HMRC has confirmed it is not interested in people having a clear-out. You become a trader when you are buying items with the purpose of selling them at a profit — a key distinction. If you occasionally flip items on eBay but it is not systematic buying-to-sell, you are likely not a trader.

What about the property allowance for Airbnb?

Airbnb hosting has a separate £1,000 property allowance (distinct from the £1,000 trading allowance). If your total Airbnb income is under £1,000, it is fully exempt. Above that, you report it through Self Assessment and can deduct actual rental-related expenses or use the £1,000 allowance.

If you rent your own home (not a dedicated investment property) through Airbnb, the Rent a Room scheme allows you to earn up to £7,500 per year tax-free from renting a furnished room in your home.

Deliveroo, Uber and gig platforms — are you employed or self-employed?

Uber, Deliveroo, and similar platforms generally treat workers as self-employed, meaning tax is not deducted at source. Your earnings are declared through Self Assessment and you pay income tax and Class 4 NI on profits. The £1,000 trading allowance applies if your earnings are that low, but most gig workers earn above this threshold. See our Uber/Deliveroo payslip guide for the full breakdown.

What to do if you have undeclared side income

If you have earned above £1,000 from side income in previous years and have not declared it, come forward proactively through HMRC's Voluntary Disclosure service. Unprompted disclosures attract significantly lower penalties (typically 0–30% of the tax owed) compared to HMRC-prompted ones (30–100%). The process is straightforward and can be done online at GOV.UK.

Frequently Asked Questions

I sold some old clothes on Vinted for £800 — do I owe tax?

No. You are below the £1,000 trading allowance, so no tax applies and you do not need to declare it. Vinted will still report your income to HMRC, but HMRC will see it falls below the threshold.

I earnt £3,000 selling handmade crafts on Etsy — what do I pay?

You must register for Self Assessment and declare the income. You can deduct the £1,000 trading allowance (leaving £2,000 taxable) or your actual expenses (materials, packaging, postage, etc.) if these exceed £1,000. Only the profit above your Personal Allowance is taxed — if this is your only income, you pay no tax until total earnings exceed £12,570. Use our self-employed calculator to see exactly what you owe.

Does this affect my employed salary if I have a side hustle?

Yes. If you are employed and have additional self-employment income, your total income from both sources is considered together for tax purposes. Your Personal Allowance is applied against your employment income first via PAYE. Self-employment profits are taxed in addition, through Self Assessment, starting at whatever rate your combined income places you in. Use our side hustle calculator to model your combined tax position.

Can HMRC go back and charge me for previous years?

HMRC can generally investigate up to 4 years back for innocent errors, up to 6 years for careless errors, and up to 20 years for deliberate non-disclosure. If you have been earning side income above the £1,000 threshold for several years without declaring it, prompt voluntary disclosure is the best course of action.

I use multiple platforms — do I add all the income together for the £1,000 limit?

Yes. The £1,000 trading allowance covers all trading income combined, not per platform. If you earn £700 on eBay and £600 on Etsy, your combined £1,300 exceeds the allowance and you must register for Self Assessment to declare the combined income (minus either the £1,000 allowance or actual expenses).