Key HMRC October 5 deadline and alert to a number of Etsy, Vinted and eBay sellers
Certain people receiving income from external sources must complete these Self-Assessments
Millions of people across Britain turn to platforms such as Vinted, eBay, and Etsy to earn extra money online. But sellers making more than 30 sales each year need to be clued up on HMRC regulations to dodge potential fines.
Lee Murphy, managing director of The Accountancy Partnership, explained these vital rules in an interview with the Mirror. Although it’s easy to lose sight of online income, he urged sellers to keep thorough records to prevent future headaches.
“HMRC uses data provided by the platform, whether this is Etsy, Vinted or even eBay, to match against each individual’s tax records,” Mr Murphy said. “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.
He warned: “While you may think this is just a scare tactic, ignoring these types of letters may lead to further full tax inquiries and criminal investigations.”
From 2025, HMRC started collecting extensive online information about sales for individuals making over 30 transactions annually or earning approximately £1,700 per year on these platforms. This data sharing doesn’t automatically require someone to fill out a Self-Assessment tax return.
However, the following people are included among those who do:
- Those who buy goods for resale or make goods with the intention of selling them for a profit.
- Those who offer a service through a digital platform, such as being a delivery driver or letting out a holiday home through a website.
- AND those generate a total income from trading or providing services online of more than £1,000 before deducting expenses in any tax year.
In essence, a Self-Assessment form is a mechanism HMRC employs to gather income tax. While tax is typically deducted from salaries and pensions through an automated PAYE system, certain people receiving income from external sources must complete these Self-Assessments.
For 2025, you must inform HMRC by October 5 if you need to submit a tax return for the previous tax year and haven’t done so before.
However, Vinted has explained that if the money you make on the platform over a year is less than what you paid for the items, you pay no tax. Its current online advice reads: “The UK reporting rules for digital platforms require platforms like Vinted to provide sellers’ information to HM Revenue & Customs (HMRC). If you make a certain amount of sales on Vinted, you’ll need to complete a seller report for HMRC.
“Completing a seller report and sharing information doesn’t mean there’s an obligation to pay taxes on your Vinted sales. HMRC reporting also doesn’t require you to do anything new regarding your taxation obligations.”
In addition to tracking item sales, Mr Murphy also suggested recording additional related costs, such as stamps, postage materials, and courier fees. If you need to complete a Self-Assessment form, this could potentially help you reclaim some of these expenses money.
He continued: “If you are selling unwanted personal items and not making repeat trades or dropshipping, then you’re unlikely to face HMRC scrutiny.
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“If you do, however, earn over £1,000 from your side hustle each year, or you exceed 30 sales within one year, then you must let HMRC know about this to avoid getting any fines or being under any sort of criminal investigation.
“If you’re unsure how many items you’ve sold or how much money you’ve made so far, then it’s best to go back and find your detailed sale records. Also keep track of any expenses that’ve gone with the sales; stamps, postage materials and courier payments, as you could get some of this back when the time comes to doing your Self-Assessment tax form.”
Should you be uncertain about how much tax you ought to pay for selling items online, you can also use this tax calculator here.
