Attention Online Sellers: HMRC Targets Income via Digital Platforms

Online sellers need to be aware of a major shift in how income made through digital platforms is reported to HMRC.

Whether you sell physical goods on Amazon or eBay, offer services via Grumtree or Etsy, or run any type of e-commerce business, digital platforms you use are now required to report your income directly to HMRC. This marks a significant move towards greater transparency and international cooperation in tax reporting.

What This Means for You as a Seller

Digital platforms must now collect key personal and transactional details from their sellers — including your name, address, and total income made through the platform. This data will be reported annually to HMRC.

Importantly, platforms must also give you a copy of the information they submit. This gives sellers the opportunity to review and ensure their own tax records match what’s being shared with HMRC. Do not worry, Elaga Accountancy has yourself backed up always to latest tax development.

Why This Is Happening ?

This isn’t just a UK initiative. The new rules follow global standards set by the OECD to crack down on undeclared income and promote tax fairness across borders. Tax authorities around the world are increasingly sharing data to ensure income earned online doesn’t slip through the cracks.

What Sellers Should Do Now

• Get your tax affairs in order – Make sure you're registered correctly and disclosing all relevant income on your tax return.
• Track your online sales – Don’t rely solely on the platform's report. Keep your own records of what you’ve sold and earned.
• Understand your tax obligations – Especially if online selling is becoming more than a side hustle.

This change puts the responsibility on platforms, but it also brings sellers under closer scrutiny. At Elaga Accountancy we always track update tax law and new rules for clients and ensure full tax compliance and best planning. Being proactive can save you from stress and potential penalties down the road.

***Contact us to learn more.

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