What is the HMRC warning to anyone using eBay?

Mr Murphy said: “HMRC uses data provided by the platform, whether this is Etsy, Vinted or even eBay, to match against each individual's tax records. "Those who've exceeded an annual trading allowance of £1,000 and also fail to declare this may receive reminder letters to ensure that they get their tax return done.

Is HMRC going after eBay sellers?

As a UK resident, when you sell over £1,740 or more or complete 30 or more sales transactions within a calendar year, eBay is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. eBay will notify you when you have crossed these thresholds.

Has anyone been contacted by HMRC for selling on eBay?

If you have sold at least 30 items or earned roughly £1,700 (equivalent to €2,000) using platforms like eBay or Vinted, or provided a paid-for service such as a holiday rental through Airbnb on a website or app in 2024, your platform provider will let you know that your information has been shared with HMRC .

How much are you allowed to sell on eBay without paying tax?

There's no new 'side hustle tax'!

In general, selling personal items is not taxed if they're below £6,000 and you're not selling as part of a business.

What are the new rules for sellers on eBay 2025?

Effective February 2025, ebay will hold private sellers funds for 14 days if the order is posted with an un-tracked delivery service (such as Royal Mail 2nd Class).

HMRC warning to anyone using eBay, Vinted, Uber or Airbnb to make money amid new rules

Why are so many people leaving eBay?

We have been through mass seller culls, more and more control over the seller/buyer relationship, the forcing of managed payments, increases in fees and requirements to use promoted/advanced promoted and now bid for clicks, to the point where ebay is taking an unsustainable percentage of profit.

Do I have to pay tax on selling personal items?

Do I Have to Pay Tax on Selling Personal Items for Less Than I Paid? If you are selling personal belongings, such as second-hand clothes, furniture, or electronics, for less than you originally paid, you usually don't need to pay tax. These are considered personal possessions, and there's no profit to tax.

How to avoid HMRC eBay tax?

Occasional online trading

If you occasionally buy or make items to sell online, you need to be more aware of the so-called 'eBay Tax'. In general, if you earn under £1,000 in a tax year before deducting trading expenses, you won't have to pay tax on this income.

How to declare side hustle income?

Paying tax on your side hustle income is different from the way you normally pay tax on your full-time salary. This time, you'll need to submit a Self Assessment tax return. If you're submitting your first tax return, you'll need to register for Self Assessment (self-employed).

How far back can HMRC go on eBay?

What happens if I don't declare my eBay earnings? If you have not declared your earnings to HMRC you may have to pay both: the undeclared tax and a penalty worth up to double the tax you owe. HMRC can go back 20 years if it suspects you are deliberately evading tax.

What happens if you don't declare all your income?

You must report this income to HMRC, usually by 5 October following the end of the tax year in which you received it. If you forget or fail to do so, you are committing at best a civil offence and at worst a criminal offence, leaving you open to financial penalties or even imprisonment.

How much personal items can I sell on eBay?

If you're selling any personal items worth more than £6,000 (with certain exceptions), the taxman will charge tax on the profit rather than the total amount received. But don't worry - if you stay under the £11,300 threshold and have only made a small profit, then you won't need to pay!

Is eBay losing popularity in the UK?

eBay in the United Kingdom

Results in Europe continue to lag, particularly in the United Kingdom and Germany, where fellow American marketplace Amazon reigns supreme. Revenue in the United Kingdom, which is still eBay's most important international market, declined by 6.3 percent.

What are HMRC nudge letters?

HMRC nudge letters are informal, yet highly targeted, communications sent by HM Revenue & Customs to taxpayers. Their primary purpose is to encourage voluntary compliance with UK tax laws by prompting recipients to review and, if necessary, correct their tax affairs.

Is HMRC taxing eBay and Vinted?

Selling your personal items on Vinted is generally not taxed. In the UK, if the money you make on Vinted over a year is less than what you paid for the items, you pay no tax.

How does HMRC find out about extra income?

It detects patterns, connections, and inconsistencies across an enormous range of data sources. The data sources that Connect feeds off of include: Information from other Government agencies/departments (DVLA, DWP, Companies House, Land Registry, electoral roll, council tax records, etc).

How much can I sell on eBay without paying tax in the UK?

The £1,000 Trading Allowance

It also covers earnings from online platforms like eBay, Depop, or Facebook Marketplace. This allowance applies to income from casual sales, not regular or planned business activities. If you make more than £1,000, you must report your income to HMRC and may need to pay tax.

Is HMRC warning about side hustle tax?

HMRC is warning those earning extra income through a side hustle to check if they need to register for self assessment and file a tax return. Side hustles can be any additional income stream, from online selling to content creation, from dog walking to property rental.

Are HMRC checking eBay accounts?

Since January 2025 eBay has been required to report seller data to HMRC—the same legislation behind letters to Vinted, Etsy and Amazon traders. eBay's report includes: Seller name, address and bank details.

What happens if you sell more than 30 items on eBay?

If you have sold at least 30 items or earned roughly £1,700 (equivalent to €2,000) using platforms like eBay or Vinted, or provided a paid-for service such as a holiday rental through Airbnb on a website or app in 2024, your platform provider will let you know that your information has been shared with HMRC .

What are the new eBay selling rules 2025?

Just got notification of new buying and selling rules for Ebay, from 4th Feb 2025. All buyers will pay a 4% +75p sales tax on items they bid on/buy, the price will be hidden in that the listing will show the seller price plus the fee. Sellers will be able to see the fee amount for what it's worth.

Do I need to pay tax on clothes I sell?

Selling clothes online - the tax implications

As with any other kind of business, online second-hand clothing retailers are generally required to pay taxes on their income. This applies whether you have your own website or sell through other platforms such as Etsy, eBay, Vinted and Depop.

What is the punishment for tax evasion in the UK?

Income tax evasion penalties – summary conviction is 6 months in jail or a fine up to £5,000. The maximum penalty for income tax evasion in the UK is seven years in prison or an unlimited fine. Evasion of VAT – in the magistrate's court, the maximum sentence is 6 months in jail or a fine of up to £20,000.

How much can I earn on a side hustle before paying taxes?

Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC 's new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.

Is eBay still relevant in 2025?

eBay Growth Statistics

A remarkable 60% of eBay buyers globally say buying pre-loved goods has become more important to them. The platform continues to evolve: eBay has 134 million active buyers worldwide in Q1 2025, a 1% YoY increment in account listings.