Regulatory Changes Online Sellers Need to Know for 2024–25
New Rules for Digital Platform Sellers
As of 1 January 2024, digital platforms like eBay, Etsy, Airbnb and Deliveroo must collect and report seller information to HMRC. These reports will begin submission from January 2025—a key part of a Europe-wide strategy to reduce tax evasion.
Even if you consider your sales a hobby, HMRC may view them as a trade. This means you could be expected to register as self-employed and file a Self Assessment Tax Return (SATR).
Who’s Impacted by the Changes?
If you regularly sell:
Items you’ve bought to resell
Handmade goods
Second-hand products
Services (e.g. food delivery, short-term lets)
…you fall under these new rules.
Digital platforms will report income directly to HMRC, who will review and compare it against your declared income. Where discrepancies are found, you may be required to register as self-employed and submit tax returns.
What If You’re Earning Below the Threshold?
Each year, you benefit from a £1,000 tax-free trading income allowance. You also get a separate £1,000 allowance for property income.
But here’s the catch: even if you earn less than £1,000, you may still need to register and report if HMRC believes you are trading. It’s wise to get professional advice.
Why E-commerce Accounting Matters
Online sales can ramp up quickly, and with growth comes complexity. That’s why proper bookkeeping is vital.
You’ll need to maintain accurate records such as:
Sales invoices (paper and electronic)
Platform payment statements
Customer income records
Emails confirming transactions
Bank statements and deposit logs
Platform fees and gateway charges
If your sales grow to over £90,000, you must register for VAT. And if you don’t meet VAT requirements, HMRC can contact your platforms—who may suspend or remove your listings.
Record Retention and Penalties
HMRC requires you to keep financial records for at least five years after the submission deadline (31st January).
Failing to do so—or providing inaccurate or incomplete records—can result in penalties.
Need Support? Let’s Simplify It.
Running an online business or selling casually doesn’t mean navigating tax rules alone.
At Profectus Accounting, we help online sellers and small businesses stay compliant, reduce stress, and take control of their finances with confidence. From SATRs to VAT to ecommerce accounting, we’ve got you covered.
Please get in touch to make sure you’re tax-ready and growth-ready.
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