Explained: the tax rules for online marketplace sales

Online platforms will have to report sale details to HMRC in future, but the basic tax responsibilities for individual sellers have not changed. Lee Murphy of The Accountancy Partnership explains 

From now on, HMRC will collect sales data from digital marketplaces. As a result, anyone who sells goods and services on platforms such as Vinted, eBay, Amazon, Etsy, Airbnb, Uber, and Deliveroo, or freelancer sites, must ensure they pay tax on income exceeding £1,000.

According to the HMRC, the goal is to crack down on sellers using these marketplaces to avoid paying tax while earning more than the Trading Allowance, which is set at £1,000 per tax year.

This allowance is the maximum income an individual can receive through ‘miscellaneous’ self-employment or property letting before being required to register as self-employed with HMRC and fill out a self-assessment. Any profits above £1,000 will be taxed.

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