Credit: eBay

eBay sellers and other online platforms face tax bills as a deadline to share users’ profit details with HMRC comes into effect.

Since January 2024, HMRC has asked for data on people who make more than £1,700 a year or complete 30 transactions.

It’s hoped the new rules will root out sellers who have failed to declare a trading income.

Many people have taken to the platforms to earn pin-money to add to their income.

Companies like eBay, Vinted and Etsy have until January 2025 to share with HMRC users’ personal details and income.

John Hood, of accountancy firm Moore Kingston Smith, said:

“HMRC has striven to make clear that it is not interested in people selling unwanted Christmas gifts but in professional online traders who have not reported their profits.

“There are some basic tests to check if this is a hobby or a trade.

“The most important test being whether the person is selling goods or services with a view to making a profit.

“People should remember that it is not too late to register for self-assessment and complete a tax return by the end of January.”

A spokesman for HMRC said:

“For people selling personal possessions online absolutely nothing has changed.

If you aren’t trading and just occasionally sell unwanted items online there is no tax due.”