The platforms are telling HMRC
Lesson 9 of 12 in our free Side Hustles & Self-employment guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Side Hustles & Self-employment is free for everyone.
Got a code? Unlock this lesson
Questions you'll answer
Dex: 'I'll just keep my sales to 29 a year and HMRC will never know.' What's wrong with this?
Quick facts
- Mo: 6 sales of his own old clothes, £90 total → Not reported. Under both thresholds and just decluttering.
- Sam: 40 sales of his own old games and books, £600, all at a loss → Reported, but likely no tax. 30+ sales triggers reporting, but selling your own stuff at a loss generally isn't trading.
- Dex: 55 sales of trainers bought to flip, £5,000 income → Reported and may owe tax. Reported AND trading for profit, well over the £1,000 allowance. Hi Dex.
- Jas: 35 handmade earring sales, £2,100 → Reported and may owe tax. Making to sell is trading, and income is over £1,000.
- Myth: “Platform reporting creates a brand new tax on selling stuff online.” — No new tax. The rules just help HMRC see income that was already taxable.
- Fact: “If you're trading, you have to report income over the trading allowance even if the platform doesn't report you.” — The £1,000 trading allowance is the line that matters for you — not the platform's reporting threshold.
- Myth: “Getting reported means HMRC will automatically fine you.” — Reporting is just data. If you're decluttering or under the allowance, there may be nothing to do.