22nd June 2026
Online platforms have become an increasingly popular way for individuals and businesses to sell goods, provide services and earn additional income. Whether you sell products through an online marketplace, rent out property, undertake freelance work or generate income through digital platforms, HMRC now has greater access to information about those activities than ever before.
While the underlying tax rules have not changed, new reporting requirements mean that online platforms must provide information about certain sellers directly to HMRC. As a result, HMRC is expected to have significantly greater visibility of income generated through digital platforms and may be able to identify discrepancies more quickly.
Since January 2024, online platforms operating within the scope of the regulations have been required to collect information about sellers and report certain details to HMRC on an annual basis.
The rules apply to many types of online platforms, including those used for:
The information reported can include details such as the seller’s identity and the income received through the platform.
Not necessarily.
Many people use online platforms simply to sell unwanted personal possessions, and this will often not create an income tax liability.
However, where individuals are regularly buying, making or selling goods with the intention of making a profit, HMRC may consider this to be trading activity. Similarly, income earned through freelance work, property lettings or other services may be taxable.
It is important to remember that receiving a report from a platform does not automatically mean tax is due. The facts of each situation will determine whether there is a tax liability and how much tax may be payable.
HMRC has confirmed that it has already received information relating to millions of sellers and billions of pounds of transactions. As its systems continue to develop, it is expected that this information will increasingly be used to identify potential compliance issues and follow up with taxpayers where discrepancies arise.
This could result in:
Some of the most common issues include:
Many individuals assume that selling through online marketplaces is not taxable. While this is often true for occasional sales of unwanted possessions, regular buying and selling for profit may be treated differently.
Income earned through delivery services, ride-sharing platforms and freelance marketplaces is often taxable, and accurate records should be maintained to support income and expense claims.
Income from short-term holiday lets and residential property may need to be declared to HMRC. Platform reporting may make it easier for HMRC to identify undeclared rental income.
Individuals using overseas platforms or earning income from overseas activities should ensure that all relevant UK reporting requirements are met.
The best approach is to ensure your tax affairs are up to date and that all taxable income is correctly reported.
If you have earned income through online platforms, it is important to:
Where income has not been reported correctly in previous years, it is often beneficial to address the issue before HMRC makes contact.
If you generate income through online platforms and are unsure of your tax position, Thompson Jenner can help.
Our experienced tax team can review your circumstances, advise on your reporting obligations and assist with disclosures where required.
For further information, please contact a member of the Thompson Jenner team.
