From January 2024 digital platforms like eBay, Vinted, Etsy and Airbnb will have to collect seller data and send onto HMRC.
Do you sell items on these digital platforms?
If you are one of the many who sell on digital platforms such as eBay, Vinted, Airbnb and Etsy then be warned that from 1 January 2024 these type of platforms will have to collect seller data ready to submit to HMRC, under OECD rules. HMRC can then match this data against their records and check income is being reported correctly, and will no doubt look for patterns in case there is a trade.
The platforms won’t have to make a report until 31 January 2025, but failure to do so, or to provide inaccurate, incomplete, unverified sellers’ records, will result in fines and penalties for the platform.
Are you an ‘occasional’ seller?
For those who use these platforms to sell unwanted items there is an exclusion for ‘occasional’ sellers. This applies where the platform facilitated less than 30 sales and the seller received no more than €2,000 (about £1,700) in a reportable period. Platforms will also provide a copy of the reported information to the seller, so it does give some comfort that you should be notified in advance if you are being reported.
Your trading allowance
Each individual should have a £1,000 trading allowance per tax year which can be set against the turnover from such activities, or actual expenses can be used. If you have sold more than £1,000 in a tax year then you may have to report the sales to HMRC.
Get In Touch
If you are concerned that you may have a reporting requirement due to sales on such platforms we can assist you with reporting this on your tax returns. We can also assist you with disclosing to HMRC any earlier years that you may have not disclosed yet. More information on disclosures to HMRC can be found on Rob’s blog https://whitingsllp.co.uk/taxes-honesty-is-the-best-policy/
For more information or advice, contact your local Whitings LLP office today!
Disclaimer - All information in this post was correct at time of writing.