+44 (0) 1908 774323
   
Helen Beaumont

Essendon Tax

Independent tax consultants ...

HMRC Taking A Good Look At Savvy Online Sellers

Helen Beaumont

CREATED BY HELEN BEAUMONT

Published: 27/08/2025 @ 09:02AM

#HMRC #taxevasion #datasharing #onlinesellers #globalobjectives

HMRC's new data sharing initiative, which aligns with the OECD's global objective to tackle tax evasion, has been met with mixed reactions from online sellers ...

It's crucial for online sellers to ensure that their income is accurately reported!

It's crucial for online sellers to ensure that their income is accurately reported!

While some see it as a necessary step towards ensuring fair taxation, others are concerned about the potential invasion of privacy and increased scrutiny from tax authorities. Under this initiative, online platforms such as Etsy, Vinted, eBay, and even social media platforms like Instagram and OnlyFans, are now required to collect sales and income information from their sellers and share it with HMRC.

This means that any income earned through these platforms
will now be visible to tax authorities!

And this means it is crucial for online sellers to accurately report their income and pay their taxes. It's worth noting that this initiative does not apply to all online sellers. Only those who earn income through online platforms are required to comply.

However, with the rise of the gig economy and side hustles, it's becoming increasingly common for individuals to earn income through online platforms. Therefore, it's important for anyone who falls under this category to understand their tax obligations and stay on top of their finances.

One of the main concerns for online sellers is the potential for their data to be shared with other tax authorities around the world. As part of the global data sharing agreement, HMRC can now exchange information with other tax authorities that have also signed up for the initiative.

This means that if you earn income through an online platform in a different country, the tax authorities in that country may also have access to your income information. This could lead to potential tax implications and must be taken into consideration when reporting your income and paying your taxes.

HMRC has already started compliance checks on the highest reported earners in previous years, even before the first full year of data is due to be reported in January 2025. This means that online sellers who have not accurately reported their income in the past may already be under scrutiny.

It's crucial for online sellers to ensure that their
income is accurately reported!

It's also important to note that this initiative applies to all types of income, not just traditional sales. Services provided through online platforms, such as Uber, Deliveroo, and Airbnb, are also subject to reporting. This means that if you earn income through these platforms, you must also ensure that it is accurately reported and taxed accordingly.

Online sellers must also consider the currency in which their income is earned. With the global nature of online commerce, it's common for individuals to earn income in different currencies. When reporting this income to HMRC, it must be converted to GBP, which could have an impact on the final tax liability.

HMRC's new data sharing initiative is a significant
step towards tackling tax evasion!

As online commerce continues to grow, it's important for tax authorities to have access to all relevant information to ensure fair taxation. Online sellers must now be aware of their tax obligations and stay on top of their finances to avoid any potential compliance checks or penalties.

By accurately reporting their income and paying their taxes, online sellers can continue to thrive in the ever-evolving world of online commerce.

Until next time ...


HELEN BEAUMONT
Join my mailing list! Click here and be one of the first to know when I publish a new blog post!

Would you like to know more?

If anything I've written in this blog post resonates with you and you'd like to discover more about accurately reporting your online seller activity, it may be a great idea to give me a call on 01908 774323 and let's see how I can help you.

Share the blog love ...

Share this to FacebookBuffer
Share this to FacebookFacebook
Share this to TwitterTwitter
Share this to Linkedin (popup window)Linkedin
Share this to Pinterest (popup window)Pinterest
Share this to WhatsApp (popup window)WhatsApp

#HMRC #taxevasion #datasharing #onlinesellers #globalobjectives

About Helen Beaumont ...

Helen Beaumont 
Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen has specialist knowledge and experience in tax planning and uses every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.

More blog posts for you to enjoy ...

Click here to view this blog post


A pension tax raid would put the NHS in danger

A pension tax raid risks driving GPs to retire early and undermining new neighbourhood care plans. It could also destabilise NHS funding and deepen workforce gaps. Clarity on tax reforms is urgently needed, especially with th...

Click here to view this blog post


HMRC launches real-time HICBC payment for smoother PAYE

HMRC's real-time HICBC payment lets employees settle the charge through PAYE. It's quick, accurate and avoids self-assessment for many. It's a practical win for households receiving child benefit ......

Click here to view this blog post


Are directors' loans a good cash flow strategy or just another tax trap?

Here's a straight-talking take on directors' loans. They can ease cash flow or invite HMRC scrutiny. Used with discipline, they work; misused, they hurt ......

Click here to view this blog post


Salary or Dividends: Optimising Income for Directors

Directors of limited companies must make informed decisions about their remuneration strategies. Optimising income for directors involves balancing salaries and dividends while considering significant changes to tax legislati...

Click here to view this blog post


Should Directors Use Salary Sacrifice To Reduce Income Tax And National Insurance?

Wondering if salary sacrifice to reduce tax is worth it? You can cut NI, boost pension contributions, and keep payroll efficient. Here's how it works for directors ......

Click here to view this blog post


UK Unveils Amnesty For Covid Loan Debtors: Your Last Clean-Slate Chance

Here's what the UK's amnesty for Covid loan debtors means for you. Pay back what you shouldn't have taken, no questions asked. Miss it, and expect tougher enforcement soon ......

Click here to view this blog post


Understanding The 10-Year Charge On Trusts Without The Headaches

The 10-Year charge on trusts can be a confusing subject for many, so here's a clear, friendly guide in blog post form. Learn what it is, how it's calculated, and what you need to do. Stay compliant and avoid surprises ......

Click here to view this blog post


HMRC Pension Relief Crackdown: What Higher-Rate Taxpayers Need To Know

The HMRC pension relief crackdown means stricter evidence rules, no phone claims, and more checks. If you're a higher-rate taxpayer, you'll need accurate figures and documents. Get your pension contributions data ready to cla...

Other bloggers you may like ...

Click here to view this blog post


Why serviced accommodation in Milton Keynes beats traditional hotel stays

Posted by Emily Freeman on https://blog.shortstay-mk.co.uk

Here's why serviced accommodation in Milton Keynes is a smarter choice than a hotel. Expect more space, better Wi‑Fi, and the freedom to live on your ...

Click here to view this blog post


Practical ways to overcome imposter syndrome at work

Posted by Dave Cordle on https://blog.davecordle.co.uk

Here's how to overcome imposter syndrome at work with clear, practical steps. You'll reframe self-doubt, track wins, and seek proper support. It's a c ...

Click here to view this blog post


Unlocking sustainable economic growth through smarter, steadier government

Posted by Roger Eddowes on https://blog.essendonaccounts.co.uk

Here's a clear path to sustainable economic growth: stable rules, simpler taxes, and targeted investment. It shows how government policy can unlock bu ...

Click here to view this blog post


Wolverton Solutions versus The Modern Business Dilemma: When Tech Hinders Growth

Posted by Andrew Parker on https://blog.wolvertonsolutions.com

Let's explore how our company, Wolverton Solutions, removes IT friction and turns technology into a strategic asset. We're proactive, secure by design ...

Click here to discover sBlogIt! The done-for-you blogging service