Tax year: 2026/27 | Last reviewed: 2 October 2026
Since 1 January 2024, digital platforms have had to collect information about sellers and report it to HMRC each year under new international rules. The first reports covering 2024 were sent in January 2025. If you earn money through Upwork, Fiverr, Etsy, eBay, Vinted, Airbnb, Deliveroo or similar platforms, HMRC can now see what you have received.
What platforms report
Platforms report your name, address, date of birth, tax identification such as your National Insurance number, and the total you earned, fees and number of transactions, for each calendar year. This covers:
- sales of goods
- personal services, such as freelance work, tutoring, deliveries or taxi rides
- short-term lets of property
- rental of vehicles
Platforms do not have to report you if you made fewer than 30 sales and received less than about £1,700 (€2,000) of goods sales in a year. Services and lettings are reported whatever the amount.
Do you need to pay tax?
Being reported does not automatically mean tax is due. The question is whether you are trading.
- Selling your own unwanted items: usually not trading and not taxable, though valuable items may have capital gains tax.
- Buying to resell, making goods to sell or providing services: usually trading.
If your gross trading income across everything is £1,000 or less in a tax year, the trading allowance means you do not need to tell HMRC. Above that, you must register for Self Assessment and declare the profit. Short-term lets over the £1,000 property allowance need declaring too.
What if you have not declared it?
HMRC is using platform data to send letters to people whose reported income does not match their tax returns. It is much better to come forward before receiving one.
- Use HMRC’s Digital Disclosure Service to declare past income.
- Penalties are much lower for an unprompted disclosure than when HMRC finds you first, and can be nil for careless errors disclosed voluntarily.
- Interest is charged on the late tax, currently at 7.75%.
Keeping it simple going forward
- Keep a record of income, platform fees, postage, materials and other costs. Platform fees are allowable expenses.
- Consider a separate bank account for platform income.
- Check whether your gross income will take you into Making Tax Digital, which applies once qualifying income is over £50,000 from April 2026, £30,000 from April 2027 and £20,000 from April 2028.
Read who needs to file a Self Assessment return and what expenses sole traders can claim.
FAQs
Do I pay tax on selling my old clothes on Vinted?
Generally no. Selling your own used belongings for less than you paid is not trading.
Will HMRC contact me?
Possibly. HMRC compares platform data with tax records and writes to people where there is a gap.
Can an accountant help with a disclosure?
Yes. We handle disclosures regularly and deal with HMRC on your behalf. See our late tax return help.
Talk it through with Digivolve
If you have undeclared platform income, talk to us in confidence. We will work out what is owed and make the disclosure for you.
This article is general information based on the rules for the 2026/27 tax year as at October 2026. It is not personal tax advice. Rates and thresholds can change, so please speak to us before acting.