Secondhand sellers on platforms like Vinted and eBay could face further tax crackdowns as part of plans to fund Andy Burnham's proposed 20 per cent cut to business rates for the hospitality industry. The Accountancy Partnership warns that any changes could affect not only large non-compliant firms but also sole traders selling vintage clothes or trading cards.
Potential New Measures
Lee Murphy, managing director of The Accountancy Partnership, said: "It appears the burden will be placed on the big marketplace giants, so sellers will start to notice changes on the platform. Any moves will likely build on policies that signal greater transparency to stop HMRC having to chase down individual sellers."
Murphy predicts the Government will enforce more "stringent identity verification," including collecting a seller's National Insurance number or unique taxpayer reference. He noted that "marketplaces like Amazon already require photo ID and regularly re-verify seller information beyond initial account creation, so this may be rolled out more broadly."
Impact on Sellers
Murphy added: "While it creates a fair bit more admin work for legitimate sellers, it may also go a long way toward increasing consumer confidence. Sellers approaching the registration threshold would be notified of their obligations, increasing marketplace accountability but ultimately placing responsibility with the sellers."
Since 2025, online selling platforms have had to share information about sellers' earnings with HMRC, as part of rules the UK agreed to follow under the Organisation for Economic Cooperation and Development (OECD). The reporting rule applies to accounts that sell more than 30 items or earn more than 2,000 euros a year (currently around £1,735). The law applies to UK-based companies, but HMRC can request information from digital platforms based outside the UK as well.
Tax-Free Allowance and Self Assessment
All sellers have a £1,000 tax-free allowance for 'trading income'. If all trading income is below this threshold, sellers do not need to inform HMRC or fill in a Self Assessment tax return. Self Assessment is the system HMRC uses to collect Income Tax. Tax is usually deducted automatically from wages and pensions, but people and businesses with other income and support payments must report it in a tax return. If income exceeds £1,000 a year, a Self Assessment tax return is required.
