HMRC Taking A Good Look At Savvy Online Sellers

CREATED BY HELEN BEAUMONT Published: 31/12/2025 @ 09:00AM #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!

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!

Share the blog love ...

Buffer Facebook Twitter Linkedin Pinterest WhatsApp #HMRC #taxevasion #datasharing #onlinesellers #globalobjectives

About 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 ...
		Ground rents to be capped: what the new £250 limit means Ground rents will be capped at £250 from 2028, and the rules mostly target future homes rather than existing leases. It's part of wider leasehold reform and a push towards commonhold.The direction is clearer, but today's leas...
		Why late tax return penalties keep rising as HMRC clamps down Late tax return penalties are rising because more tax goes unpaid, and HMRC is pushing harder. If you're late, the costs can stack up quickly, but you can sometimes challenge mistakes or agree on a payment plan. So always act...
		Can't pay your self-assessment bill by the 31st of January? If you can't pay your self-assessment bill by the 31st of January, don't hide from it. Get the numbers right, pay what you can, and talk to HMRC early about a time to pay arrangement. You'll usually reduce late payment penalt...
		UK tax returns and the mid-year Capital Gains Tax rate change in 2024/25 The mid-year Capital Gains Tax rate change means HMRC's online return may miscalculate CGT after the 30th of October 2024. Taxpayers may need to compute an adjustment and enter it manually. A careful check now can prevent und...
		New Year Nudge: Beat the self-assessment filing deadline without stress Here's the simple reality of the self-assessment filing deadline: it doesn't move, but your stress can. My blog post this week explains why filing early helps, what HMRC charges for delays, and how an online tax return can ke...
		How HMRC Christmas tax rules trip up festive side hustlers HMRC Christmas tax rules often surprise side hustlers each December. Here's what counts, what doesn't, and when to register. Stay compliant and keep more of your Christmas earnings ......
		Do I need to file a self-assessment tax return? Unsure if you must file a self-assessment tax return? This guide explains who needs to file, what income triggers it, and how to register with HMRC. Get clear before the tax return deadline ......
		Salary sacrifice changes set to hit millions of UK employees Salary sacrifice changes will cap tax-free pension contributions at £2,000 from April 2029. Many employees and employers will face higher costs and new admin. Here's what's changing, who's affected, and how to prepare ......

Other bloggers you may like ...
		Person of Interest got AI right, and we'd better start paying attention Posted by Steffi Lewis on https://www.steffilewis.com I've just finished watching five seasons of 'Person of Interest' on Amazon Prime, and like all the best sci-fi, it didn't really feel like fiction by ...
		Smart Picks For Silverstone Accommodation In Milton Keynes Posted by Emily Freeman on https://blog.shortstay-mk.co.uk Hunting for silverstone accommodation that's close, comfy, and hassle‑free? Base yourself in Milton Keynes for fast circuit access and buzzing nightli ...
		Creative ways to overcome common career challenges without losing your spark Posted by Dave Cordle on https://blog.davecordle.co.uk Feeling stuck, stretched, or unsure is normal. Here are some creative, practical ways to overcome common career challenges without burning out ... ...
		HMRC's Time to Pay agreements: a simple way to help pay your tax bill Posted by Roger Eddowes on https://blog.essendonaccounts.co.uk Need time to help pay your tax bill? HMRC's Time to Pay arrangements can spread a Self-Assessment balance into manageable monthly payments. File early ...