HMRC to receive details of sellers on Digital Platforms
From 1 January 2024, digital platforms such as EBay, Vinted, AirBnB, Depop to name but a few, will be required to make annual reports to HMRC about those who sell goods or services through them.
Although HMRC has been able to request this information up to now, the changes mean that UK based platforms will now have to report to HMRC every year.
Not only will HMRC receive information from UK based platforms, but they will also receive details from some overseas countries who collaborate with HMRC and share information.
An exemption from reporting will apply if you are a ‘casual seller’ and sell less than 30 items per year for no more than 2,000 euros. You have to satisfy both of these thresholds to be within the exemption.
Websites such as Gumtree who allow customers to post adverts only and do not handle the sales will be not be required to file annuals report to HMRC.
If you are trading or letting out a property on a digital platform, bear in mind that you can claim a tax allowance of £1,000 on the first £1,000 you turnover before expenses and so may not have any tax to pay.
https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
Remember that you only pay tax on any PROFIT you make, so if you sell second hand goods for less than you paid for them, you will not make a profit.
Further guidance can be found here on HMRC’s website.
I am here to help if you require help registering with HMRC and reporting your income.
Please contact me at [email protected]
