This is not something I get involved in but this has been on my radar for some time as I have many friends and clients who engage in these platforms to earn a second income (side hustle) 😊
- Staring January 2024, significant changes are coming to popular digital platforms like eBay, Vinted, Etsy, and Airbnb. These platforms will now be obligated to gather seller data and share it with HMRC.
- If you’re among the countless individuals who use platforms such as eBay, Vinted, Airbnb, or Etsy to conduct your business, it’s crucial to be aware of the impending requirements.
- Started from 1st January 2024, these platforms will be mandated to collect seller data in accordance with OECD regulations. HMRC will then utilise this data to cross-reference it with their records to ensure accurate income reporting. They will also be on the lookout for any suspicious patterns that may indicate unreported business activity.
- It’s important to note that these platforms will not be required to submit their reports until 31st January 2025. However, failure to comply with these regulations, or providing inaccurate, incomplete, or unverified seller records, may result in fines and penalties for the platform itself.
- Now, if you consider yourself an ‘occasional’ seller who uses these platforms to sell items from time to time, there is a provision that may apply to you. The ‘occasional’ seller exclusion applies if the platform facilitated fewer than 30 sales, and the seller received no more than approximately £1,7000 in a reportable period.
- Furthermore, each individual is entitled to a £1,000 trading allowance per tax year, which can be offset against the turnover generated from these activities, or you can opt to deduct actual expenses. If your sales exceed £1,000 in a tax year, it may be necessary to report them to HMRC.
- It’s crucial for both regular and occasional sellers on digital platforms to be aware of these upcoming changes, as they can have significant implications for your tax obligations and potential penalties for non-compliance.
