Skip to content 
If you’re selling goods or services online—or even thinking about it—you need to know about HMRC’s brand-new powers that will force UK-based digital platforms to automatically report key information on their sellers.
Yes, HMRC Already Targets E-Traders—but It’s About to Ramp Up
HMRC has been eyeing online sellers for years. In March 2012, it rolled out the E Marketplaces Campaign, urging eBay and Amazon sellers to voluntarily disclose undeclared income, netting £27,175,038 within five years. Most recently, in January 2023, HMRC broadened its scope to people monetizing OnlyFans, YouTube, and TikTok—but that was just the start.
From January 2025, Your Data Will Be Auto-Shared
Previously, HMRC had to request seller details from digital platforms. Now, platforms must automatically provide this data to HMRC and share it with other tax authorities. This sweeping move stems from the OECD’s “Model Rules for Reporting by Platform Operators,” so expect the data flow to be faster, more complete, and far more organized.
Are You “Trading” or Just “Decluttering”? HMRC Will Decide
If you profit from selling regularly—yes, even if it’s a side hobby making jewellery after work—HMRC sees you as trading. A one-off garage clear-out? Probably not. But if you’re earning money, doing it frequently, and have any profit motive, HMRC will likely come knocking.
VAT Could Be Your Secret Pitfall
Hit over £85,000 in turnover on your online sales? You’re VAT-liable—and that’s calculated on a rolling 12-month basis, not by calendar year. Expect HMRC to cross-check credit card merchant data against any VAT returns you file—or fail to file.
A New Global Dragnet for Evasion
With this automatic info-sharing, HMRC no longer relies on voluntary disclosures or tip-offs. It can pinpoint under-declared revenue or unregistered businesses in a flash. If you haven’t been paying your fair share, HMRC will reach out—or worse, launch a full investigation.
Early Disclosure = Lower Penalties
If you’re sweating over unreported income, don’t delay. Coming clean before HMRC contacts you often means a lower penalty (though you’ll still owe the tax plus interest). Once an inquiry starts, the penalties can skyrocket.
We’re Here to Help—Before HMRC Knocks
Are you already nervous about an upcoming HMRC crackdown? Our seasoned experts—including former HMRC Inspectors—are standing by to guide you through disclosures, investigations, and VAT complexities.
Act Now—Don’t Wait for HMRC to Find You
The UK tax gap—over £30 billion—is driving HMRC’s aggressive pursuit of online sellers. Don’t let that next ominous letter be yours.
Need advice or assistance? Call us on 0800 1357323 or email info@taxaccountant.co.uk for a no-obligation consultation on disclosing undeclared income or resolving any tax/VAT dispute. Protect your finances—before HMRC’s new digital platform crackdown targets you.