UK eBay and Airbnb sellers could have app sales data sent to tax office

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Posted:
in iOS edited January 2

Sellers on eBay, Airbnb, and others in the UK may soon face some interest from the country's tax body, with digital platforms now obliged to report the financial details of some users to His Majesty's Revenue and Customs.




Online selling has become a handy way for people to create supplemental income, and in many cases, the sums are too small to be disclosed to tax officials. However, rule changes have come into force that will make it easier for the UK's His Majesty's Revenue and Customs (HMRC) to know when some people need to start reporting and potentially pay tax.

Under the rules from January 1, reports BBC News, online platforms such as eBay, Airbnb, Vinted, and others where UK-based users sell products and services must start informing HMRC about some user transactions on its services. This covers both online services through websites and transactions performed in apps.

Though HMRC could previously request the information, the rules now mean the apps and services are obligated to make the reports.

The majority of users in the country won't be subject to the rulers, as it will only apply in cases where users have made 30 or more profitable transactions or earned 2,000 euros (1,734 pounds, $2,195). User accounts that don't meet those two criteria won't be reported to HMRC, but details can still be requested.

Users do not have to change what they are doing for the reporting to take place. Companies affected by the rules will be obligated to make their first report to HMRC at the end of January 2025, with the information including the user's tax ID, bank account details, and the value and volume of transactions.

The rules are being implemented as part of an agreement with the Organization for Economic Cooperation and Development (OEDC), in a bid to reduce instances of tax dodging. By being informed of transactions, HMRC will have more of an idea of the side incomes of UK residents, and which do not declare the added revenue.

In the UK, citizens are required to report to HMRC if they earn 1,000 pounds ($1,265) per year in trading income, but while there is a need to inform HMRC, it doesn't mean tax is actually payable on the amount.

"These new rules will support our work to help online sellers get their tax right first time," said an HMRC spokesperson. "They will also help us detect any deliberate non-compliance, ensuring a level playing field for all taxpayers."



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Comments

  • Reply 1 of 7
    sloth77sloth77 Posts: 25member
    Minor nitpick, but "Her Majesty" should be "His Majesty" in the first paragraph.  Later mention is correct.
    timpetustrtamiloveapplegearwilliamlondonappleinsideruserchasm
  • Reply 2 of 7
    jimh2jimh2 Posts: 620member
    Collecting all owed taxes helps everyone out. As for the eBay stuff you only have to keep your records so if you are selling your own stuff you will most likely have a loss and there will not be any tax owed. As for the AirBNB they should have been paying since the creation of this company. 
    foregoneconclusionchasm
  • Reply 3 of 7
    iloveapplegeariloveapplegear Posts: 113member
    This is aimed at all those who make a living off selling on ebay, the average person does not.
  • Reply 4 of 7
    fred1fred1 Posts: 1,112member
    Good idea. Many people where I live thought they could rent out apartments on Airbnb without declaring the income to the tax authorities. What they didn’t think of was that the tax folks can find their listing just as easily as potential guests. Oops. 
  • Reply 5 of 7
    danoxdanox Posts: 2,874member
    Tax dodging? Start at #10 Downing Street, the current occupant (weasel inside) dodges all Taxes....
  • Reply 6 of 7
    davidwdavidw Posts: 2,053member
    iloveapplegear said:
    This is aimed at all those who make a living off selling on ebay, the average person does not.

    On the contrary, the tax board is going after the ones that are supplementing their income by selling on eBay. Even if they are not making  a living selling on eBay, alone.

    If a person only income comes from (say) making $7K selling on eBay, then there's a good chance that no income taxes will be due on that $7K. Though the $7K is still required to be reported, the tax board will not go after them if not reported.  But if a person had other taxable income, say from a job or retirement pension, then there's a good chance income taxes will be due on the $7K. This is when that $7K might not be reported or under reported and the ones the tax board are going after.
  • Reply 7 of 7
    RespiteRespite Posts: 111member
    davidw said:
    iloveapplegear said:
    This is aimed at all those who make a living off selling on ebay, the average person does not.

    On the contrary, the tax board is going after the ones that are supplementing their income by selling on eBay. Even if they are not making  a living selling on eBay, alone.

    If a person only income comes from (say) making $7K selling on eBay, then there's a good chance that no income taxes will be due on that $7K. Though the $7K is still required to be reported, the tax board will not go after them if not reported.  But if a person had other taxable income, say from a job or retirement pension, then there's a good chance income taxes will be due on the $7K. This is when that $7K might not be reported or under reported and the ones the tax board are going after.
    No one makes $ in the UK.
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