News & Updates

03/01/24

HMRC cracking down on sellers via Depop, eBay, Vinted and Airbnb – who’s next?

As of 1 January 2024, transaction details from sales on digital platforms such as Vinted, Airbnb, Depop and eBay must be collected and reported back to HMRC in an effort to ensure all users are reporting their income as legally required. This means that anyone selling pre-owned items such as clothing and hobby equipment, or renting a spare room in their own home will have to pay tax on any earnings above £1,000 in any given tax year.

Due to HMRC’s new sign up with the Organisation for Economic Co-operation and Development (OECD), information of sellers will be collected and shared with HMRC. Due to this new agreement in the UK, information of sold items or services in any other countries who have also signed the agreement will be shared with UK tax authorities.

These websites will be collecting individuals name, date of birth, address and national insurance number – alongside any earnings and costs on the websites – under new rules being enforced by HMRC. However, users have until January 2025 to report this data with the platforms.

This information will now be supplied to HMRC on an automatic basis as of the New Year meaning anyone incorrectly reporting their income could be scrutinised by the tax authorities – with possible fines if they are found to have been dodging income tax.