With the "first wave" of platform data from eBay, Vinted, and Etsy now officially in HMRC’s hands as of January 2025 , the question for many sellers has shifted from "Will they find out?" to "What happens when they do?" Under-reporting income isn't always about deliberate evasion—often, it’s a simple misunderstanding of the £1,000 Trading Allowance. However, HMRC’s response depends entirely on why the error happened. The Cost of Getting it Wrong: HMRC Penalty Tiers Inaccura

Based on the most recent information and discussions around the new UK tax rules for individual sellers on platforms like eBay, Etsy, Vinted, Facebook, Depop, etc., here are the top 10 questions sellers are currently asking: Short answers are below. .. You'll find longer answers around our blog. Do I have to pay tax if I sell my personal or unwanted items occasionally online? When do the new rules require online marketplaces to report my sales information to HMRC? What sales

Many sellers assume HMRC’s checks are random... HMRC’s digital tracking system, known as Connect 2.0, is quietly one of the most powerful data tools in the UK. It links information from banks, online marketplaces, and even social media to paint a complete picture of your income — whether you’ve declared it or not. Many sellers assume HMRC’s checks are random. They’re not.If you’ve received one of those polite “nudge” letters that says “We believe you may have additional incom

If you sell informally on Facebook Marketplace  (your own items, cash in hand, local pickup, no payment through Meta), then Facebook isn’t “facilitating” the payment, so: There’s no transaction record in their commerce system They don’t have payment data to report In short: If Facebook never handled the money, it won’t report the sale. And of course, enen if Fcebook does handle the transaction through the Marketplace platform, if they are your own items then no tax or report

Etsy is a brilliant place to sell your handmade creations, vintage finds, and craft supplies — but with HMRC now receiving data directly from platforms like Etsy, it’s important to know when your hobby becomes a business in the eyes of the tax office. Etsy, like eBay, Vinted, and Amazon, falls under the new DAC7 reporting rules . That means Etsy will share your seller information with HMRC if you’ve had more than 30 sales  or earned over about £1,740 (€2,000)  in a calendar y

Don't worry...they'll know! Even if they're not sure, they'll write and it's up to you to proven them otherwise. How Will HMRC know? HMRC uses something called “the badges of trade” — basically, signs that show whether you’re in business... If you: Buy with intent to sell Repeat transactions regularly Modify or improve items before selling Promote your listings like a business ...then you’re probably trading. AI is now doing most of the heavy lifting, so it will be tracking a

You must register for self-assessment. The £1,000 trading allowance is an alternative to claiming actual expenses , not a tax-free “first £1,000 chunk.” That means: If your total trading turnover  (not profit) is £1,000 or less → you can ignore it completely — no need to register or report. If your turnover is more than £1,000 →  you must register and declare all of it, not just the amount over £1,000. Then you get two ways to calculate  your taxable profit: Option Descript

When eBay reports your sales to HMRC (DAC7) From January 2024 onward, eBay (and all similar platforms) must send a DAC7 report  to HMRC every year.This report includes: Seller’s name, address, and NINO (if provided) Total sales amount (gross) Number of transactions Fees, commissions, and refunds They must do this if, in a calendar year , you: Sell more than 30 items , or Make over €2,000 (around £1,740)  in sales. This is purely an information report  — it doesn’t trigger aut

All 3 are correct... They just mean different things.  £1000 is the taxable threshold for HMRC £1740, or over 30 sales is the reporting threshold for eBay etc. So, if you exceed more than 30 sales or £1740 in trading income, eBay will send your data to HMRC. If you are then found have crossed the HMRC taxable threshold of $1000, tax may be due. * Note: £1740 seems an odd number, but it's based on €2000 Euros. Platform Thresholds... The £1,740 (or €2,000) rule applies per plat

Don’t Miss the October 5th Deadline — Here’s What It Really Means If you’ve started selling on eBay, Vinted or Etsy this year and earned over £1,000 , there’s an important date you need to know: October 5th. That’s the deadline to register for Self Assessment with HMRC. What the October 5th Deadline Is For Every year, if you’ve earned more than £1,000 in trading income  (not profit) between 6 April and 5 April , HMRC expects you to tell them. You do that by registering for

We saw this on their website and yes, it's confusing. Most of the conversation on the web is regarding Income Tax. But the £ 6000 limit quoted one one of the pages on Vinted's site is regarding Capital Gains Tax, which is very different. Capital Gains Tax, or CGT, refers to larger value items. The good news is it will probably never apply to you so it can largely be ignored. And it certainly doesn;t having a relevance to Income Tax, which is the main topic of conversation at

Key HMRC Dates Every Online Seller Should Know When you’re busy selling on eBay, Vinted, Etsy or Amazon, it’s easy to lose track of the important tax deadlines. Here’s a quick guide to the key dates HMRC expects you to know — and how to stay organised so none of them sneak up on you.   6 April – The New Tax Year Starts Every UK tax year runs from 6 April to 5 April .That means all your sales and expenses between those dates count as one year’s trading activity. Example: Anyt

Decoding the New Era of Digital Selling: Tax for Your Second-Hand Finds The rise of online platforms like Vinted has transformed how we buy and sell second-hand clothes, accessories, and homeware. What once felt like a simple decluttering exercise can now involve significant earnings for many. However, a significant shift is underway in the UK tax landscape, impacting every seller, from casual clear-outs to burgeoning vintage boutiques. As of January 2024, new HMRC rules mean

Generally speaking they run from April 6th to April 5th, with the payment being due the following January Green Row The tax return and payment due on the 31st January 2026, is for any sales you made between April 6th 2024 and April 5th 2025. So, in reality, this year (24/25) has already closed in regard to sales made, it's just that payment is due this coming January. Blue Row This is known as the 'current tax period' in regard to recording sales made. This started on April 6