Do I Need to Tell HMRC About Income from Online Platforms?

If you're making money through eBay, Vinted, Etsy, Airbnb or similar platforms, you may need to tell HMRC — even if it's just a side hustle. The rules depend on what you're selling, how much you've earned, and whether you're trading. In many cases, selling your own unwanted belongings won't need to be reported, but there are important thresholds you need to know.

What counts as income from online platforms?

Income from online platforms includes money, gifts or services you receive from:

• Selling personal possessions
• Selling goods (including items you've made or bought to resell)
• Providing a service
• Creating online content
• Renting out land or property

If you receive gifts or services instead of money, you need to use the value of what those items or services would have cost if you'd paid for them.

Selling your personal possessions

Personal possessions are items you own for your own use — things like clothing, furniture, kitchen equipment, jewellery, computers and phones.

If you're simply selling your own unwanted items, you probably don't need to pay Income Tax on this. For example, if you're clearing out your attic and selling bits and pieces on eBay or Vinted, and none of the items are worth more than £6,000, you don't need to tell HMRC — no matter how many items you sell.

When Capital Gains Tax might apply

You may need to pay Capital Gains Tax if you sell a single item for more than £6,000.

The £6,000 threshold also applies to the total value of items that form a set — for example, chess pieces, books by the same author or on the same subject, or matching ornaments like vases.

Example: You're renovating your home and decide to sell a picture you bought 5 years ago for £4,600. You sell it for £7,000. Because you've sold it for more than £6,000, you may need to pay Capital Gains Tax and should check whether you need to tell HMRC.

Selling goods as a trading activity

You're probably trading if you sell goods that you have:

• Bought with the intention of selling for a profit
• Made yourself, including items you make as a hobby

This is different from selling your own unwanted possessions.

If you're trading, you need to add together all your income from trading activities (which includes selling goods, providing services, and creating online content). If your total trading income is more than £1,000 in the tax year (6 April to 5 April), you need to tell HMRC.

The £1,000 is called the trading allowance.

Example: You upcycle second-hand furniture as a hobby and resell it. You receive £900 from selling through online marketplaces and this is your only trading income. You can use the £1,000 trading allowance, which could mean you don't need to tell HMRC.

Example: You start making money from selling unwanted clothes, then begin buying items from car boot sales and charity shops to resell for profit through online marketplaces. You do this regularly. This is trading activity and you may need to tell HMRC about this income.

Providing services

If you use online platforms to provide services — such as taxi driving, food delivery, gardening, dog walking, tutoring, cleaning, or hiring out equipment — this counts as trading income.

You need to add this income to your other trading activities. If the total is more than £1,000 in the tax year, you need to tell HMRC.

Creating online content

Income from creating online content includes:

• Making online videos
• Producing podcasts
• Social media influencing

This includes the value of gifts and services you receive from promoting products online, not just cash payments.

Example: You're a content creator with a social media channel where you review beauty products. You receive advertising income on your videos and also receive free gifts from the companies you review. You need to add together the cash and the value of the gifts — if this comes to more than £1,000 in the tax year, you'll need to tell HMRC.

Again, you add this income to your other trading activities and apply the £1,000 trading allowance.

Renting out property

If you rent out a room in your home, your entire home, another property, or even land (such as your driveway) through platforms like Airbnb, you're receiving rental income.

Example: You rent out your spare room for short-term lets using online platforms and receive regular payments after your guests check in. You may need to tell HMRC about this rental income.

There are separate allowances for rental income — for example, the Rent a Room scheme allows you to earn up to a certain amount tax-free if you're renting out a room in your main home.

How to check if you need to tell HMRC

HMRC has an online tool to help you work out if you need to report your income from online platforms. Before you use it, you'll need to know:

• How much you received, or expect to receive, during the tax year
• Whether you share this income with someone else
• Whether you have other sources of income you need to declare

Remember that the tax year runs from 6 April to 5 April. Some platforms show your income for the calendar year (1 January to 31 December), so you may need to work out the tax year figure before using the tool.

In some cases, you may need to tell HMRC about your income even if you don't have to pay tax on it.

What information do platforms collect?

Digital platform operators may need to collect and check specific details about you and report information to HMRC. This is part of new rules to help HMRC understand income from online platforms.

Sources

• Check if you need to tell HMRC about your income from online platforms

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.