Personal finance specialists are urging people who hope to earn a little extra cash and declutter before Christmas to be cautious, as HMRC is now able to monitor online selling activity. Officials warn that failing to follow tax rules could result in detailed investigations or fines that surpass any money made from selling unwanted items. Since the start of this year, HMRC has been receiving data from platforms such as eBay and Vinted for users completing more than 30 transactions annually, regardless of whether they have made a profit.
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For Vinted users in particular, thresholds have tightened: anyone who completes 30 sales a year or surpasses £1,700 in gross sales within a 365-day period now has their information reported to HMRC. Lee Murphy, Managing Director of The Accountancy Partnership, explained that HMRC cross-checks online sales data with individuals’ tax returns. Those earning above the £1,000 annual trading allowance who fail to declare their income may be issued reminder letters, which should not be ignored, as doing so can lead to full tax inquiries or even criminal investigations.
Murphy noted that people selling occasional unwanted personal items are unlikely to face scrutiny unless they are engaging in repeat trading or dropshipping. However, anyone earning more than £1,000 from a side hustle each year, or completing over 30 sales, must inform HMRC to avoid financial penalties or legal repercussions. Sellers who are unsure how much they have earned or how many items they have sold are advised to review their activity and maintain accurate records.
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Keeping track of related expenses—such as stamps, postage materials, and courier fees—may also prove useful when completing a self-assessment tax return. With HMRC monitoring online marketplaces more closely than ever, experts emphasise that transparency and organisation are essential to staying compliant and avoiding unexpected tax issues.
