Sellers on eBay, Vinted or Depop
Clearing out wardrobes versus running a resale business.
HMRC digital platform reporting: what it means for you
Since January 2024, platforms like eBay, Vinted, Fiverr, Etsy and Airbnb have had to report seller data to HMRC under digital platform reporting rules. If you have received a letter, or are wondering whether HMRC now knows about your online income, here is what is actually happening and what to do next.
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Part of our guide to creator accounting services.
Quick answer
HMRC digital platform reporting means platforms such as eBay, Vinted, Fiverr, Etsy and Airbnb must send seller data to HMRC each year, with the first reports arriving in January 2025. This does not automatically mean you owe tax — most casual sellers below the small-seller exemption are unaffected — but if you have undeclared online income, sorting it now is far better than waiting for a letter.
On this page
Contents
Who this is for
Is this you?
Freelancers on Fiverr or Upwork
Platform income now visible to HMRC directly.
Airbnb and short-let hosts
Rental income reported alongside sales platforms.
Anyone who received an HMRC letter
A nudge letter referencing platform data.
Side hustlers unsure of their status
Casual selling that may have tipped into trading.
Creators paid through marketplaces
Course platforms, content marketplaces and similar.
Income streams
Everything we handle for you
- eBay and Vinted sales
- Etsy shop income
- Fiverr and Upwork freelance earnings
- Airbnb and short-let hosting
- Depop resale income
- Course and digital marketplace sales
- Delivery and ride-share platform earnings
Sound familiar?
Problems you face, answered
Any digital platform operating in the UK that facilitates the sale of goods or services, personal services, or property and vehicle rental must report qualifying sellers. In practice this includes eBay, Vinted, Depop, Etsy, Fiverr, Upwork, Airbnb and similar marketplaces, freelance sites and short-let platforms. If a platform pays you for selling, freelancing or letting a room, it is very likely within scope.
Broadly, your identity details, total income and number of transactions for the year, and the bank account used for payouts. It is a data-matching tool showing who is trading at a reportable scale, not a line-by-line breakdown of every individual sale you made.
HMRC digital platform reporting began on 1 January 2024, with the first annual reports covering the 2024 calendar year sent to HMRC in January 2025. Reporting continues every January from there, so this is now a permanent, ongoing feature of how HMRC gathers information on online sellers.
Not everyone reported gets a letter, but where the platform data does not appear to match what has been declared through Self Assessment, HMRC often sends a "nudge letter" — a prompt to review your position, not an accusation. Read it carefully, do not ignore it, and get advice before replying.
No, not automatically. Being included in a platform report only means HMRC has data — it is not a penalty or a judgement about you. Selling personal possessions you already owned is not taxable at all. Tax is only due if you were genuinely trading, and even then only on the profit, not the gross amount.
Generally four years for an innocent error, six years for carelessness, and up to twenty years where behaviour is deliberate. This is one more reason a calm, early conversation about any undeclared income is worth having rather than waiting to be contacted.
Do not ignore the letter and do not panic into overstating a liability you may not have. Gather your platform statements and bank records, work out honestly whether the activity was trading or personal selling, and get advice before you reply, especially if you think some income may need declaring.
Selling personal possessions you already owned and used is not trading, and is not taxable, regardless of how many items or how much money is involved. The rules are aimed at buying to resell, making items to sell, or running an ongoing selling activity, not clearing out a wardrobe.
Platforms do not have to report sellers who make fewer than 30 sales and less than roughly £1,700 in a year. If you are below both thresholds, the platform generally will not report you at all, though this does not itself change whether any income is taxable.
Yes. Regularly buying items with the intention of reselling for profit is trading income, taxable in the normal way, regardless of the reporting rules. The platform reporting simply makes this activity more visible to HMRC than it was before.
Each platform assesses the small-seller exemption independently, but for tax purposes HMRC is interested in your total trading activity across all platforms combined, so being under the exemption on each individual site does not necessarily mean no tax is due overall.
Property income above £1,000 a year, after the property allowance, generally needs declaring through Self Assessment, and Airbnb-style platforms are within the reporting regime, so this income is visible to HMRC in the same way as marketplace sales.
How we help
The work we do for you
Confidential income review
We assess whether your platform activity is taxable.
Learn moreHMRC letter response
We help you reply to a nudge letter accurately and calmly.
Learn moreVoluntary disclosure support
If a disclosure is needed, we manage it end to end.
Learn moreSelf Assessment for creators
Getting future platform income declared correctly, going forward.
Learn moreTax explained
How HMRC digital platform reporting works
From 1 January 2024, UK digital platforms — covering marketplaces, freelance sites, ride-share and delivery apps, and short-let accommodation sites — have been required to collect and report information about sellers to HMRC under international rules adopted across many countries, not just the UK.
The first reports covering the 2024 calendar year were sent to HMRC in January 2025, and reporting continues annually from there. This was a change in visibility for HMRC, not a change in what is taxable — the underlying tax rules on trading income are unchanged.
A small-seller exemption means platforms do not have to report individuals who make fewer than 30 sales and less than around £1,700 in the year. This protects genuinely casual, low-volume sellers from being reported at all, though it is a reporting threshold, not a tax exemption in itself.
The critical distinction is between selling personal possessions and trading. Selling your own used items, even regularly and even for a reasonable amount of money, is not a taxable activity, because there is no profit-making trade — you already owned the goods for personal use.
Trading, by contrast, means buying or making items with the intention of reselling for profit, or providing services for payment on an ongoing basis. This has always been taxable through Self Assessment once profits exceed the £1,000 trading allowance, and platform reporting does not change that threshold.
For freelance platforms such as Fiverr, Upwork and PeoplePerHour, income earned by providing services has always been trading income in the same way as any self-employment. HMRC online sellers and freelancers alike now have their totals independently confirmed rather than known only to them and the platform.
Short-let accommodation platforms report hosts in the same way as sales marketplaces. Property income above the £1,000 property allowance generally needs declaring, and where a host has furnished holiday letting status, additional specific rules can apply.
HMRC uses the data it receives for risk assessment and data matching, comparing platform-reported figures against what has actually been declared through Self Assessment. A mismatch does not automatically trigger an investigation, but it does increase the likelihood of an HMRC nudge letter or a more detailed enquiry.
A nudge letter is a prompt, not an accusation. It typically asks you to review your tax position for a specific period and either confirm everything is correctly declared or take action to correct it. Responding thoughtfully, ideally with professional advice, usually resolves things without escalation.
If you genuinely have nothing to declare — for example, you were selling personal possessions or you are below the trading allowance — a calm, factual response explaining your position is usually all that is needed.
If review shows you do have undeclared trading or platform income, HMRC’s Digital Disclosure Service allows you to come forward voluntarily. Doing so before you are contacted, or promptly after a nudge letter, generally results in significantly lower penalties than if HMRC identifies the position first.
Going forward, if your platform activity is genuinely a trade, registering for Self Assessment, keeping simple records of income and costs, and filing on time is the straightforward way to stay ahead of any future data-matching, rather than waiting to react to it.
Source: Income Tax rates and allowances (gov.uk) · Self Assessment (gov.uk)
Worked example: a Vinted seller reviewing their position
- Personal wardrobe items sold (own use)
- £950 — not taxable
- Items bought specifically to resell for profit
- £4,200 — trading income
- Cost of items bought for resale
- £2,600
- Postage and platform fees
- £380
- Trading profit
- £1,220
- Less trading allowance
- £1,000
- Taxable profit
- £220
Illustrative example, not a client result. Illustrative only, using 2026/27 figures from our tax config. The £950 of personal items sold is excluded entirely as it is not a trade.
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Expenses
Vinted, eBay and Fiverr expenses: what resellers and sellers can claim
Allowable expenses for platform sellers UK depend on whether you are trading or simply clearing out a wardrobe — only genuine resale activity carries deductible costs. Once selling has become a trade, stock bought for resale, postage, platform fees and listing photography are all deductible against your income. Check your own position with our side hustle tax checker, read more in our guide on when selling becomes a business, or get help from our side hustle tax service.
Usually claimable
- Cost of stock bought specifically for resale
- Platform and payment processing fees
- Postage and packaging
- Photography and listing costs
- A reasonable share of storage costs
- Accountancy fees for reviewing your position
Usually not claimable
- The original cost of personal possessions you already owned
- Personal items sold that were never bought for resale
- Fines or penalties
- General household costs unrelated to a trading activity
Not sure if you've crossed into trading? Run the side hustle tax checker first, then speak to us about tidying up your records.
How HMRC’s rules apply to content creators
If you are self-employed
Self-employed costs must be incurred wholly and exclusively for your trade. If you use the £1,000 trading allowance, you cannot also deduct actual expenses against that same income. Equipment treatment depends on cash basis or traditional accounting.
If you run a limited company
A limited company deducts costs incurred wholly and exclusively for its business. Equipment may need capital allowances rather than an immediate expense deduction. Personal use or company-paid private costs can create a taxable benefit or director’s loan entry; company ownership is not a blanket deduction.
For separable mixed-use costs, such as a phone bill, claim only the identifiable business proportion and keep evidence. This does not make ordinary clothing or every dual-purpose purchase deductible. A receipt alone does not prove a business purpose: retain the brief, invoice or usage record too.
Costs to review for your work
- Business-use cameras, lighting, audio equipment and editing software
- Editors, thumbnail designers, virtual assistants and licensed music
- Travel to business shoots and the evidenced business share of home-working costs
Everyday clothing, ordinary grooming, personal meals, private gaming and fines are generally not deductible. Qualifying costumes or protective clothing and business-travel subsistence have different rules. Client entertaining is generally disallowed. Receiving a product from a brand does not automatically create an expense: record the income treatment separately and deduct only an allowable business cost.
HMRC: self-employed expensesHMRC: business travelHMRC: clothingHMRC: company deductionsHMRC: capital allowancesHMRC: creator income and gifts
Keep records alongside our creator expenses checklist, or discuss your costs with our bookkeeping team.
General UK guidance, not personal advice. The deduction depends on your facts and accounting basis.
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Structure
Sole trader or limited company?
Almost everyone in this position is, or should be, a sole trader for tax purposes. A limited company is rarely relevant until platform trading has grown into a substantial, established business, and it should not be considered as a way to avoid dealing with historic undeclared income.
£
Sole trader£46,111
Limited company£46,091
Illustrative estimate only. Uses the published 2026/27 tax configuration. Assumes a single-director company drawing all profit, with no Employment Allowance. Excludes expenses, student loans, pensions, other income, Scottish rates and individual circumstances. Not tax advice.
VAT & MTD
VAT and Making Tax Digital
VAT
Platform sales rarely approach the £90,000 VAT registration threshold on their own, but if you run a genuine resale or freelance trading business at volume, cumulative turnover across all your selling activity counts towards it. We check this as part of any income review.
Registration threshold: £90,000 · Deregistration: £88,000
Making Tax Digital
If platform trading income, combined with any other self-employment, takes your gross qualifying income above £50,000, Making Tax Digital for Income Tax will apply from April 2026, with the £30,000 threshold following in April 2027.
- April 2026: qualifying income above £50,000
- April 2027: qualifying income above £30,000
- April 2028: qualifying income above £20,000
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Diary
Key deadlines
5 October
Register for Self Assessment for the previous tax year
31 October
Paper tax return deadline
31 January
Online return, balancing payment and first payment on account
31 July
Second payment on account
Monthly accounting packages
Accountant packages for content creators
Self-employed or limited company, choose the support that fits how you trade. We review income such as eBay and Vinted sales, Etsy shop income, Fiverr and Upwork freelance earnings as part of agreeing your scope.
Self-employed accountant packages for content creators
Trading in your own name? Choose support for your personal tax return and, where included, bookkeeping and MTD Income Tax updates.
Up to £25,000: Starter £299, Complete £475 a year. £25,000–£50,000: Starter £499, Complete £599 a year. Above £50,000, fees use the upper limit of your band: Starter 1%, Complete 0.75% (minimum £39.99 + VAT a month). Monthly payments are the annual fee divided by 12, excluding VAT. Starter does not include bookkeeping. Turnover above £1 million is quoted individually.
Self Employed Starter
Turnover: Up to £25,000
For sole trader creators who just need their tax return done properly
£24.92
per month + VAT
£299.00 per year + VAT · Bookkeeping not included
- Your annual Self Assessment tax return, prepared and filed
- All your creator income streams covered: AdSense, brand deals, affiliates, tips and subscriptions
- Gifted products, PR trips and freebies declared correctly
- Allowable expense review so you claim everything you are entitled to
- Deadline reminders ahead of every filing and payment date
- Free basic tax advice by email through the year*
Self Employed Complete
Turnover: Up to £25,000
For full-time self-employed creators who want their books kept for them
£39.58
per month + VAT
£475.00 per year + VAT · Bookkeeping included
- Everything in Self Employed Starter
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Making Tax Digital for Income Tax quarterly updates, where required
- Payment on account planning so January never surprises you
- Sole trader vs limited company review as your income grows
- Quarterly check-in on your numbers and tax position
Limited company accountant packages for content creators
Trading through a company? Choose support for company accounts, Corporation Tax and the director services included below.
Essential/Compliance
For creators who have just set up a limited company
From £45.83
per month + VAT
- Year-end company accounts for your creator business
- Corporation Tax return (CT600) and tax computation
- Confirmation statement preparation and filing support (excludes the Companies House filing fee)
- One director Self Assessment return (salary and dividends from the same company)
- Deadline reminders ahead of every filing date
- Free basic tax advice by email through the year*
Core/Complete
For full-time creators with brand deals and platform income
From £62.50
per month + VAT
- Everything in Essential/Compliance
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Quarterly Making Tax Digital VAT returns
- Director payroll with RTI filing and pension submissions
- Quarterly review call on your numbers and tax position
- Gifted items, overseas payouts and payment platform reconciliation
Growth
For creator businesses with editors, managers or a team
From £75.00
per month + VAT
- Everything in Core/Complete
- Payroll for up to five team members, such as editors or assistants
Starting fees exclude VAT. Your turnover, records and agreed work determine the final quote. *Basic tax advice is free; technical work is quoted separately. MTD support applies where required.
See all fees and one-off servicesWant this off your plate?
Talk through your platform income, allowable expenses and next steps with a creator accountant.
Book your free creator tax callWritten and reviewed by
Waqas Sagar ACA FCCA FMAAT
Chartered Accountant with 18+ years' experience and founder of Accotax. Has served over 5,000 clients across London and the UK.
About Waqas SagarAccotax on LinkedIn Last reviewed: 2026-09-21
FAQs
Frequently asked questions
Yes, where earlier years contained undeclared taxable trading profit. Assessment time limits and penalties depend on whether the error was reasonable, careless or deliberate. Reconstruct each year separately and take advice before making a disclosure or replying to a letter; do not put several years into one current return.
Platforms can request identifying information such as a National Insurance number or date of birth to verify sellers and meet reporting obligations. The request does not itself mean tax is due or an enquiry has opened. Supply information only through the platform’s genuine secure process and keep a copy of its notice.
Marketplaces, freelance sites, ride-share, delivery and short-let platforms operating in the UK, including eBay, Vinted, Fiverr and Airbnb.
Seller identity, total income, transaction numbers and payout account details, not itemised transactions.
1 January 2024, with the first reports sent to HMRC in January 2025.
Not everyone, but a mismatch between platform data and your tax return often triggers a nudge letter.
Not automatically — it depends whether the activity was genuine trading and whether it exceeded the trading allowance.
Generally four years for genuine errors, six for carelessness, up to twenty for deliberate non-disclosure.
Read the letter carefully, do not ignore it, and get advice before responding.
If you are above the small-seller exemption, the platform reports your details to HMRC, but this alone does not mean tax is due.
No. Selling personal possessions you already owned is not a taxable trade.
Fewer than 30 sales and less than around £1,700 a year, below which platforms generally do not report you.
Yes, freelance platform income has always been taxable trading income.
Yes, short-let accommodation platforms are within the same reporting regime.
HMRC is interested in your total trading activity across all platforms, not just each site individually.
Yes, voluntary disclosure before HMRC contacts you generally results in much lower penalties.
If your activity is trading and profits exceed the trading allowance, yes.
Keep reading
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