​Examples of when you don’t need to report:

• Selling second-hand clothes on Vinted for less than you paidhttps://truemanbrown.co.uk/register-for-self-assessment-2024-25-guide/

• Clearing out personal items occasionally without profit motive

Examples of when you do:

• Buying items to resell at a profit

• Regularly making and selling handmade goods

• Flipping electronics or collectibles

The £1,000 Trading Allowance

If your total trading income (from all sources, not just online) is £1,000 or less in a tax year, you don’t need to report it or pay tax.

This is known as the trading allowance.

If your income exceeds £1,000, you must register for Self Assessment and report your earnings.

You can then choose to:

• Deduct the £1,000 trading allowance, or

• Deduct your actual business expenses (whichever gives a better result)

Even if your income is below £1,000, you might still want to report a loss to offset against future profits.

Capital Gains from Online Sales

If you sell a valuable item (a “chattel”) for more than £6,000, you may need to report a Capital Gain. Common examples include:

• Designer handbags

• Rare collectibles

• High-end electronics

However, some items—like private cars—are exempt.

How to Register with HMRC

If you need to report your online income, you must:

1. Register for Self Assessment by 5 October following the end of the tax year in which you started trading.

2. Submit your Self Assessment tax return by 31 January of the following year.

For example, if you started selling in June 2025, you must register by 5 October 2026 and file your return by 31 January 2027.

Why This Matters More Than Ever

With platforms now reporting your income directly to HMRC, it’s no longer possible to “fly under the radar.”

If you’ve been selling online without declaring income, now is the time to get your tax affairs in order.

​Need Help On The New HMRC rules for online sellers 2024? Trueman Brown Can Guide You

At Trueman Brown, we help online sellers:

• Understand their tax obligations
• Register for Self Assessment
• Maximise deductions and allowances
• Stay compliant with the new HMRC rules for online sellers 2024

📧 Email: mark@truemanbrown.co.uk 📞 Call: 01708 397262

Whether you’re a casual seller or running a growing online business, we’ll help you stay on the right side of HMRC.

❓ FAQs: HMRC rules for online sellers 2024

Q1: Do I need to tell HMRC if I sell online occasionally?

Not always. If your total income from online sales is under £1,000 in a tax year and you’re not trading for profit, you may not need to report it. However, if you’re regularly selling or making gains, HMRC expects you to register under the new HMRC rules for online sellers 2024.

Q2: What is the £1,000 trading allowance?

It’s a tax-free threshold for casual or side income. If your total trading income (from all sources) is £1,000 or less, you don’t need to register for Self Assessment. Above that, you must report your earnings.

Q3: Which platforms are affected by the new HMRC rules?

From January 2024, platforms like eBay, Etsy, Vinted, Airbnb, Amazon, and others must report seller income to HMRC annually.

Q4: What if I sell a valuable item like a designer bag or collectible?

If you sell it for more than £6,000 and make a profit, you may need to report a Capital Gain. Some items, like private cars, are exempt.

Q5: How do I register with HMRC as an online seller?

You must register for Self Assessment by 5 October following the end of the tax year in which you started selling. Returns are due by 31 January the following year.

Q6: Will HMRC know about my sales even if I don’t report them?

Yes. Digital platforms are now required to report seller income directly to HMRC, so it’s best to stay ahead and declare your earnings properly.

Q7: Can I deduct expenses instead of using the trading allowance?

Yes. If your expenses exceed £1,000, you can choose to deduct actual costs instead of the allowance when filing your tax return.