If you sell on Vinted, eBay, Etsy, Depop, Airbnb, or any other online platform, HMRC now knows about it. The new digital platform reporting rules came into force in January 2024, and the first batch of data has now been shared with HMRC. Here is what that actually means for UK online sellers in 2026.
What are the new marketplace reporting rules?
Under the OECD Model Reporting Rules for Digital Platforms (adopted by the UK), online platforms must collect and report seller data to HMRC each year. The aim is to close the tax gap by giving HMRC visibility of marketplace income that previously went undeclared.
Platforms covered include resale marketplaces, ride-hailing apps, accommodation platforms, freelance services, and content platforms. If you sell goods or services through a digital platform, you are very likely covered.
What gets reported to HMRC?
Platforms report the following details for each seller who crosses the reporting threshold:
- Your name, address, and date of birth
- Your tax identification number (UTR or NI number)
- Total gross income earned through the platform
- Number of transactions per quarter
- Any fees the platform charged you
- Bank account details where payouts were made
Who triggers reporting?
You will be reported to HMRC if either of these is true in a calendar year:
- You make more than 30 sales on the platform, OR
- You earn more than €2,000 (around £1,700) through the platform
This applies per platform, so if you sell on both Vinted and Depop, each platform reports independently. You could trigger reporting on both even if your total income is modest.
Does being reported mean you owe tax?
No. Being reported is not the same as owing tax. The £1,000 trading allowance still applies. Selling genuine personal possessions is still not taxable. The reporting threshold is just lower than the tax threshold, so plenty of people will be reported without owing anything.
What it does mean is that HMRC can now cross-check your declared income against marketplace data. If you should be filing a tax return and you are not, the chance of being noticed is much higher than it used to be.
What HMRC will do with the data
HMRC is using the data in three main ways: identifying unregistered traders who should be filing self-assessment, checking that registered sellers are declaring all their platform income, and selecting cases for compliance enquiries.
The first letters and “nudge” notifications based on this data started landing in 2025, and the volume is increasing in 2026. Most are educational rather than punitive at this stage, but ignoring one is a serious mistake.
What to do if you receive a letter
If HMRC writes to you about marketplace income, do not panic but do not ignore it either. The letter will usually ask you to either register as self-employed, file a tax return for a specific year, or confirm you do not owe tax.
Before responding, work out exactly what you actually owe. Get the data the platform sent HMRC, calculate your true taxable income (after allowable expenses), and respond accurately. If you are unsure, get an accountant involved before you write back.
How to stay on the right side of HMRC
The simplest approach is also the most effective:
- Track all your sales properly, ideally with bookkeeping software
- Register as self-employed if your trading income is over £1,000
- Keep receipts and records for everything you spend on stock, postage, fees, and supplies
- File self-assessment on time and pay what you owe
- If in doubt, talk to a specialist accountant who works with online sellers
Simplr Accounting works with online sellers across every UK marketplace. If you have received an HMRC letter, are not sure where you stand, or just want clarity on your tax position, book a free discovery call and we will help you sort it out.