From 1 January 2024 online platforms such as websites, online marketplaces and apps that allow individuals and businesses to sell items and services are required to collect and report seller information and income to HMRC.
If you sell items through eBay, Etsy, Facebook or another online marketplace, or rent out your property using Airbnb, Vrbo, Booking.com or a similar platform, HMRC will cross-reference the data it receives with other records it holds to ensure you are reporting your income accurately.
Freelancers who operate through an online platform such as Deliveroo or Uber will also come under the reporting requirements.
Websites and digital platforms must report information about sellers to HMRC including:
• name;
• address;
• date of birth;
• taxpayer identification number;
• earnings from selling via the platform;
• fees paid to the platform;
• business registration numbers;
• where property has been rented out, the address of the property; and
• bank account details for the accounts the income was paid into.
The first reporting deadline for these digital platforms is 31 January 2025. They will be required to keep a copy of any data that they send to HMRC about you and provide this information to you.
The new reporting requirements have been brought in to help sellers get their tax right and to enable HMRC to detect and tackle non-compliance. They do not change the tax rules for online selling.