MARTIN Lewis has reassured eBay, Vinted, and Etsy users in a video update that most sellers will not be affected by the HMRC changes which have started this month.
In a special briefing, the Money Saving Expert founder said: "The tax rules have not changed. Tax is only due for traders - people who are buying things to sell for a profit."
He added: "For traders, you can sell a maximum of £1000 a year before you start paying tax on it."
Why most SHOULDN’T worry that eBay, Etsy, Airbnb etc must now share your sales data with HMRC, a speedy briefing… Courtesy @itvMLshow pic.twitter.com/QpcUyor3H5
— Martin Lewis (@MartinSLewis) February 3, 2025
It follows the news that online small businesses making money from second-hand goods or homeowners who let out their spare rooms are among those who could end up paying tax on their “side-hustle” earnings under a new tax clampdown.
From this year, digital platforms such as eBay, Airbnb, Etsy, Amazon and Vinted must share seller information with HM Revenue & Customs (HMRC) as part of a crackdown, dubbed the 'side hustle tax'.
This now allows tax authorities to detect and tackle tax evasion, while also levelling the playing field with how traditional businesses are treated for tax purposes, according to HMRC.
The threshold for earnings from side hustles is set at more than £1,000 a year – above this, online sellers must register as self-employed and file a self-assessment tax return at the end of the financial year.
HMRC was already able to request information from UK-based digital platforms, but Britain has signed up to new rules that came into effect at the start of this year via the Organisation for Economic Cooperation and Development (OECD) allowing it to share information with other tax authorities to access data from platforms based outside the UK.
Online platforms are now required to report seller information directly to HMRC.
This includes information such as tax ID, bank account details, as well as the amount and number of transactions made by sellers with sizeable trading activity of more than £1700.
It applies to digital apps and platforms – including website providers to third-party sellers – and cover the sale of goods and services, such as handmade or second-hand clothes and items, alongside taxi hire, food delivery, freelance work, and the letting of short-term accommodation or driveway parking.
