Online promoting websites akin to Ebay and Airbnb reported 4MILLION customers’ earnings to HMRC final yr

Online selling websites such as Ebay, Vinted and Airbnb reported 4million users’ earnings to HM Revenue & Customs last year, under new rules which are being referred to as a potential ‘goldmine’ for the taxman.  

The taxman received reports on the income of four million online sellers in 2025, a Freedom of Information request by tax and accounting firm BDO reveals. 

This is a 272 per cent rise on the 1.5million seller reports it received in 2024. 

Since 1 January 2024, online selling platforms have been obliged to collect information on the incomes of some users selling on their platforms and report the information to HMRC. 

This covers a range of activities from selling clothing and other items on Ebay and Vinted, to renting property on short term accommodation sites such as Airbnb or being paid via an app such as Uber to deliver food or drive a private hire cab. It also includes income made on content sharing websites. 

Earnings made from selling online reached almost £55billion in 2025, more than double the £25.5billion reported in 2024, BDO said. 

This includes money made by individual sellers as well as companies, partnerships, trusts or charities according to HMRC.

What are the tax rules for online selling? 

Since 1 January 2024, online selling platforms including marketplaces eBay and Vinted, short term accommodation sites such as Airbnb, food delivery companies, private hire and content sharing websites have been obliged to collect information on the incomes of users selling on their platforms, and report the information to HMRC. 

This is part of an international data exchange scheme introduced by the Organisation for Economic Co-operation and Development (OECD).  

The online platforms are only required to share information with HMRC where a seller using its platform makes more than 30 sales per year and earns more than £1,700.

In 2025, HMRC received 811 reports directly from selling platforms in the UK, up from 806 in 2024. 

The tax authority also received 13 reports about UK taxpayers from overseas selling platforms. Digital platforms based overseas, including for holiday lets in Europe, must also report to HMRC about their UK resident sellers.

Dawn Register, a partner at BDO says online earnings from sellers reaching almost £55billion in 2025 will be ‘a goldmine’ for HMRC.

‘With a staggering £55billion of online sales reported to HMRC for 2025, the tax authority will have a huge new target to aim at.’

‘This new data will be an absolute gamechanger for HMRC – and a goldmine for tax inspectors seeking to ensure that online sellers pay the right amount of tax.’ 

Anyone who earns less than £1,000 from side hustles in a tax year does not have to pay tax or declare this income, thanks to the Trading Allowance.

You can also earn up to £7,500 tax-free from letting out furnished accommodation in your home, under the Rent A Room Scheme.

However, if you make even £1 above your annual allowances then you need to tell the taxman, either by contacting HMRC and asking for your tax code to be changed or through a self-assessment tax return.