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HMRC will require digital platforms to collect information on how much their users make from 1 January 2024.
This means that users on platforms such as Vinted, Ebay or Etsy may be subject to tax bills or fines if they do not comply with the law.
The new rules will also apply to property letting services like AirBnB and taxi services like Uber.
Websites from countries that are part of the Organisation for Economic Co-operation and Development (OECD) will now collect data from UK-based sellers and share it with HMRC.
HMRC has always had the power to request this data on an ad hoc basis but this new rule will collect the data automatically.
Websites will have to collect users’ name’s, address, date of birth and national insurance number, alongside what they have earned and paid in fees on the platform.
Platforms like AirBnB will also have to provide the address of any property users on the site lease out.
Other data such as bank details may be collected and shared with authorities as well.
Everyone in the UK still has a trading allowance of £1,000 meaning any earnings under that threshold will not be taxed.
