People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.
This clarification follows the introduction of a new process requiring online platforms to share sales data with HMRC from January 2025.
The announcement of the reporting changes last year led to inaccurate claims that a new tax was being introduced.
HMRC has stated that nothing has changed for casual sellers. Whether it’s selling last year’s festive jumper, outgrown baby clothes, or an unwanted Christmas present, these activities remain untaxed unless the individual is considered to be trading.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive officer, emphasised: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.”
However, she added that individuals trading goods or services online may still need to register for Self Assessment and pay tax, as has always been the case.
The new reporting requirements, which came into effect in early 2024, are not a new tax. They apply to digital platforms such as eBay, Airbnb, and Just Eat.
Platforms must report sales data and some personal information to HMRC for individuals who sold at least 30 items, earned around £1,700 (€2,000), or provided a paid-for service in 2024.
HMRC clarified that receiving a notification from a platform does not automatically mean a tax return is required. Taxable scenarios include:
- Selling goods purchased for resale or made with the intent to profit.
- Offering services such as delivery driving or holiday home letting.
- Generating over £1,000 from online trading or services in a tax year before deducting expenses.
HMRC encourages anyone unsure about their tax obligations to use its free online tool or the HMRC app for guidance. New Self Assessment registrants can also find instructions on GOV.UK .
HMRC said it is working with online platforms to ensure clear communication with sellers about their tax responsibilities.
