New rules started in the UK from 1 January 2024 which mean if you sell on digital platforms, the platform operator may need to:

• collect and check specific details about you
• report details to HMRC

A digital platform is any software, including mobile apps and websites, which allows you to offer services and goods to users.

If you’re a digital platform operator, checkfind theout UKhow reportingto rulesreport forsellers digitalto platformsHMRC.

Who is a seller

You’re a seller if you register on the platform to sell goods or services, even if you’re not directly offering the goods or services yourself.

As a seller on a digital platform, you might:

• provide personal services, like delivering food, driving a taxi, or freelancing
• rent out property or transport
• sell goods

This applies whether you’re an individual, like a sole trader, or an entity, like a company.

Information you must give

Digital platform operators will ask you for certain details.

If you’re an individual seller, they’ll ask for your:

• full name
• address where you normally live
• date of birth
• tax identification number (National Insurance number if you live in the UK)

As an entity seller (such as a company), they’ll ask for your:

• legal business name
• main business address
• tax identification number (company registration number for a UK company)

They also need to know the country in which your tax identification number was issued.

If you sell as a UK partnership, they’ll need your partnership Unique Taxpayer Reference (UTR) — a reference number from HMRC.

If you rent property, they’ll need the address of each property for rent on the platform.

Platform operators may ask you for other information if they need it to register you on the platform, like a phone number or email address.

They may ask you for other details to help them to confirm your identity.

Reporting by platforms

Digital platform operators in the UK will report your details and your income from selling goods or services on their platform to HMRC. They need to collect this information yearly and send to HMRC by the following January.

For example, information collected about you between 1 January 2024 to 31 December 2024 will be reported to HMRC by 31 January 2025.

Your details will not be reported if you:

• make fewer than 30 sales of goods in a calendar year
• receive less than 2,000 euros (about £1,700) for those sales

HMRC will share your information with your country’s tax authority if you live in another country that follows these rules.

Information you will receive

Platform operators have to give you a copy of the information they have reported to HMRC.

This does not automatically mean that you owe tax.

The information is meant to help you to keep track of your earnings. It might also help if you need to tell HMRC about your income or send a tax return. These reports do not replace your normal business records or tax calculations.

The report will show you the total amount that you have earned on the platform for the calendar year, less any fees, commission or taxes deducted by the platform. The amounts will be broken down into quarters of the calendar year. You’ll need to consider the types of taxes the platform has deducted to see if you can offset these against any tax due.

If you do need to tell HMRC about your income, you’ll need to work out your income for the tax year (6 April to 5 April).

Selling online and paying tax

A platform reporting your details to HMRC does not automatically mean you owe tax.

To pay tax on the goods or services you sell online, you must either be:

• trading
• making a capital gain

You’re unlikely to pay tax if you sell personal items from your home, like contents of a loft or garage.

If you buy or make goods to sell at a profit, you’re likely to be trading and will have to pay tax on your profits.

Check if you need to tell HMRC about your income from online platforms.