HMRC Taking A Good Look At Savvy Online Sellers

CREATED BY HELEN BEAUMONT Published: 15/07/2026 @ 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 ...
		New dividend disclosures for close company directors explained Dividend disclosures on the new SA102 boxes can feel fiddly at first, but the key point is simple. If the person is a director of one close company, the reporting follows that company, not every company in which they happen t...
		Three legitimate ways to reduce Capital Gains Tax A few sensible moves can help someone reduce Capital Gains Tax without taking risks. Using the capital gains allowance, sheltering investments in ISAs or pensions, and planning sales carefully all matter. It is practical tax ...
		Probate: what documents do executors need to get started? What documents do executors need? In short, the papers that prove identity, assets, liabilities and family links matter most. Good records make probate application documents easier to prepare, reduce delays and help executors...
		How Zero-Hours Contracts are changing under new rules Zero-Hours Contracts are not being banned, but they are being tightened dramatically. The direction of travel is clearer pay, more notice, and fewer surprises for workers. UK employers should start thinking now about how they...
		Why splitting a business to avoid VAT can backfire badly Splitting a business to avoid VAT may look clever, but it often isn't. HMRC can join entities together where links exist and challenge the arrangement. Consider contracts, commercial reality, and long-term costs before acting...
		Welcome to the summer of VAT complexity and 5% surprises This summer's VAT complexity is not just about cheaper tickets and meals. It also brings fresh admin, tricky boundaries, and significant VAT compliance work for businesses. A small saving for families, perhaps, but a big exer...
		Why the middle-income trap matters in the salary sacrifice cap The salary sacrifice cap sounds as though it is aimed at high earners, but the detail creates a middle-income trap for everyday savers and SMEs. Below £2,000, the system still works well; above that, NI costs, payroll pressur...
		Final P11D deadline for HMRC expenses and Benefits in Kind filing The P11D deadline for HMRC expenses remains important this year, but bigger changes are coming soon. Employers using the old system should file on time, while others should start preparing for payroll reporting of Benefits in...

Other bloggers you may like ...
		Van life and the safety net you didnt know you needed Posted by Steffi Lewis on https://www.yourping.uk There's something undeniably appealing about van life. Waking up beside a Scottish loch, parking up on the Cornish coast or finding a quiet woodland s ...
		Why human agency matters more than AI systems Posted by Jacky Sherman on https://www.jackysherman.com As Artificial Intelligence continues to reshape the workplace, many organisations are focusing heavily on technology itself. Discussions around AI oft ...
		Unlock success with our SEO blogging service for small businesses Posted by Steffi Lewis on https://www.sblogit.com Discover the power of our SEO blogging service for small businesses. Our expertly crafted blog posts elevate your online presence, engage your audienc ...
		Where corporate visitors stay in Milton Keynes for space, privacy and easy access Posted by Emily Freeman on https://blog.shortstay-mk.co.uk Wondering where corporate visitors stay in Milton Keynes? You'll see why many teams pick serviced accommodation from Short Stay : MK over hotels and A ...