Individuals making more than £1,700 online will have their income shared with HMRC under new reporting rules for digital platforms
Self-employed individuals earning income via online platforms – including gig workers, Airbnb’ers and vintage clothing resellers – will see their earnings data reported to HMRC from 31st January, under the tax authority’s new reporting requirements for digital platforms.
These rules, which came into effect at the start of 2024, will see “sales data and some personal information” shared with HMRC by online platforms such as Uber, Deliveroo and Vinted. These platforms, and others, must now report this information where individuals:
- Have earned more than £1,700, or made more than 30 sales
- Have provided a service (such as freelance workers) via a website or app
Do I need to register for Self Assessment?
HMRC has been working with online platforms “to ensure sellers receive clear guidance on their tax responsibilities” in the coming weeks.
The tax office has said that this data sharing “does not automatically mean the individual [concerned] needs to complete a tax return”. However, HMRC will compare the information it receives against the income and tax obligations reported via the Self Assessment.
HMRC is also likely to identify taxpayers who are not yet registered for Self Assessment or reporting any income they are making via online platforms. You may need to register for Self Assessment if the following applies to you:
- You buy goods for resale, or make goods “with the intention of selling them for a profit”
- You offer a service through a digital platform, including “being a delivery driver or letting out a holiday home”
- You generate a total income in excess of £1,000 in any tax year from these activities, before deducting any expenses
HMRC insists changes will leave majority unaffected
Despite the looming effective date for the reporting rules, Angela MacDonald – HMRC’s Second Permanent Secretary and Deputy CEO – insisted that the majority of people using digital platforms to top up their income would not be affected.
“We cannot be clearer – if you are not trading and just occasionally sell unwanted items online, there is no tax due”, she said.
“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment”, MacDonald added.
As such, HMRC is assuring people who are simply “selling unwanted items online” that they can continue to do so “with confidence and without any new tax obligations”.
However, individuals who have earnings exceeding the £1,700 threshold, or with over 30 sales, can expect to be notified by any online platforms through which they have operated ahead of their details being shared with HMRC.
If you’re unsure whether you need to complete a Self Assessment tax return for the 2023 to 2024 tax year or not, can check on GOV.UK.
If you’re new to the Self Assessment, you can register online. All Self Assessment taxpayers must complete their tax returns, and pay their tax bills, by 31st January each year.
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