HMRC has launched a £40 million enforcement campaign targeting sellers on Vinted and eBay.

As more UK residents turn to platforms like Vinted, eBay, and Etsy to declutter their homes and earn extra cash, HMRC has issued a stern warning regarding the tax implications of online selling. HMRC has launched a £40 million enforcement campaign on Vinted and eBay sellers aimed at ensuring compliance with UK tax laws. This initiative involves more data-sharing between online marketplaces and HMRC, focusing on sellers who may be failing to report income from their online activities.

What’s The New £40 Million Enforcement Campaign on Vinted and eBay Sellers 

Starting in January 2024, HMRC began receiving transaction data from platforms like Vinted, eBay, and Etsy. The reporting sellers’ data to HMRC requirement applies to anyone completing more than 30 transactions a year, regardless of whether they make a profit. This data-sharing effort is set to be fully effective by 2025, continuing into 2026.

Specifically for Vinted sellers, if you exceed 30 sales or £1,700 in gross revenue in a year, platforms are required to share your transaction details with HMRC. This HMRC tax crackdown on online sellers applies to both new and existing sellers, making it crucial for anyone regularly selling online to stay informed.

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When Do You Need to Declare Your Income?

Many sellers mistakenly believe they are exempt from taxes when selling unwanted personal items online. In most cases, selling personal goods at a loss is not considered trading and doesn’t need to be declared. However, the rules change if:

• You make a profit from items bought specifically to sell at a higher price (e.g., dropshipping).
• You manufacture new items for resale.
• You engage in regular, commercial trading on platforms.

If your total sales exceed the £1,000 annual trading allowance, you must declare the income through the Self Assessment tax return. It doesn’t matter whether or not you make a profit — failing to report earnings over this threshold could lead to significant penalties.

Read our complete tax guide for online sellers in the UK to avoid common tax mistakes. It shows how to manage income, VAT, and HMRC reporting across major platforms.

How HMRC Will Be Monitoring Sellers

HMRC is now receiving detailed data from online platforms about sellers who exceed the 30-transaction threshold. This helps HMRC cross-check against tax returns. Key points about the new rules for reporting sellers’ data to HMRC include:

• Platform reporting: Platforms like Vinted and eBay must report your sales details if you exceed 30 transactions or £1,700 in gross revenue in a year.
• £1,000 trading allowance: If you exceed this threshold, you must declare the income to HMRC.
• Data-sharing: The data sharing will assist HMRC in identifying potential non-compliance with tax obligations.

What Happens If You Don’t Comply?

Ignoring HMRC’s communications or failing to declare income can lead to hefty fines, penalties, and even criminal investigations. Penalties can sometimes exceed the amount of unpaid tax, especially if you fail to respond to HMRC’s nudge letters, which are warnings about unreported income.

To avoid penalties, it’s important to maintain accurate records of all transactions, including receipts for postage, packaging, and any other associated costs. These expenses can often be deducted from your total taxable income, reducing your overall tax liability.

Key Risks of Non-Compliance

• Fines: Non-compliance can result in fines, often 30% or more of the unpaid tax.
• Criminal investigations: Serious tax evasion could lead to formal investigations.
• HMRC probes: Ignoring reminders and failing to provide information when requested increases the risk of a probe.

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Call Anytime 0203 883 4777

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Tax Tips for Online Sellers

To ensure compliance with tax laws and avoid penalties, here are practical steps you can take:

• Keep detailed records of all transactions: Document every sale, including the price you sold the item for, the cost of postage, packaging, and any other expenses.
  
• Use online tax calculators: These tools help you determine if you need to register as a sole trader or a limited company.
• Declare all income over £1,000: If your total online sales exceed £1,000 in a year, be sure to include this income in your Self Assessment tax return.
• Claim allowable expenses: Keep receipts for postage, packaging, and any fees related to selling online. These can be deducted from your taxable income.
  

How We Help Online Selling Sellers

At Apex Accountants, we can guide you through the complexities of online selling and tax compliance. Whether you’re a casual seller or running a more commercial operation, our team offers:

• Self-assessment tax return preparation: Ensure your income is declared properly, and avoid penalties.
• Tax planning: We’ll help you plan your taxes and minimise your liabilities by claiming allowable expenses.
• Business advisery: If you’re unsure about whether you should be registered as a sole trader or a limited company, we can provide strategic advice tailored to your business.

Contact us today for help with your online selling tax obligations, or book a consultation to learn how to stay compliant and minimise your tax liability.

FAQs Related to the HMRC Tax Crackdown on Online Sellers

1. Is HMRC going after eBay sellers?

HMRC isn’t targeting casual sellers selling unwanted personal items. However, data‑sharing rules introduced from January 2024 require platforms like eBay to report seller details if you exceed 30 sales or around £1,700 in gross revenue. HMRC can then match this to Self Assessment returns and may issue a “nudge” letter if nothing is declared, especially where trading income exceeds £1,000.

2. What are the new rules for sellers on eBay in 2025?

Platforms like eBay continue to share sales and user data with HMRC if thresholds are met. There are no new tax obligations for selling unwanted items, but HMRC can better monitor activity and match data to tax returns. Sellers exceeding the £1,000 trading allowance must declare income via Self Assessment.

3. What is the HMRC limit on Vinted?

There isn’t a strict “HMRC limit” for tax on Vinted sales. Vinted and other platforms report seller data if you make 30+ sales or £1,700+ gross revenue in a year. If your total trading income during a tax year surpasses the £1,000 trading allowance, you are required to declare your income.

4. Do I have to pay tax if I sell my clothes on Vinted or eBay?

Generally no—selling personal belongings at a loss (e.g., clothes you no longer wear) is not taxable. You only need to tell HMRC if you’re trading with intent to make a profit and your total income from online selling exceeds £1,000 in a tax year.

5. What counts as “trading” for HMRC?

Trading is when you sell goods you bought to sell at a profit, make items to sell, or regularly sell online. The occasional sale of personal items doesn’t usually count.

6. Will HMRC automatically tax me if I sell 30 items?

No—reporting triggers only data sharing. Your tax liability depends on whether you are trading and if your income exceeds the £1,000 trading allowance.

7. How do I tell HMRC about my online selling income?

If required, you register for Self Assessment and include your online trading income on your tax return.

8. Can I deduct expenses like postage?

Yes—allowable expenses like postage, packaging and marketplace fees can reduce taxable profit when you submit your Self Assessment.

9. What happens if I ignore an HMRC letter?

Ignoring it risks penalties, estimated assessments up to 100% of unpaid tax, and further compliance action.