Side Hustles Are Now Taxable: HMRC’s 2025 Crackdown Explained

Selling Online in 2025: What’s Actually Changed with HMRC & Digital Platforms?

Earlier this year, you might have seen headlines or social media posts claiming that “HMRC is introducing a new tax on Vinted, eBay, and Airbnb users.” Let’s clear this up once and for all:

There is NO new tax on selling your second-hand clothes, kids’ toys, or unwanted Christmas presents online.

What has changed is how online platforms report certain sellers’ data to HMRC.

What Changed from January 2025?

From 1 January 2025, platforms like eBay, Vinted, Etsy, Depop, Airbnb, Uber, and others are now required to share sales and income data with HMRC under new international transparency rules. These rules come from the OECD and are being implemented across many countries — not just the UK.

Who gets reported?

Platform operators must report to HMRC if a seller:

Earns €2,000 or more in a calendar year (roughly £1,700), OR

Makes 30 or more sales in a calendar year

If you hit either threshold, your details will be shared with HMRC by 31 January 2025.

Important: Just because your platform reported your data does not mean you automatically owe tax or need to complete a Self Assessment return — but HMRC will now know about your income.

Do You Need to Pay Tax?

It depends on what you’re selling, how often, and why.

1. Selling Personal Possessions

If you’re selling your own second-hand items (things you bought for personal use), you generally do not need to pay tax. Examples:

Selling your old clothes on Vinted

Getting rid of toys, furniture, or books your children have outgrown

Offloading last year’s mobile phone

Even if you sell 100+ items, if they were personal belongings, you’re likely not trading — so no tax due.

However, if a single item (or a set of items) sells for over £6,000, Capital Gains Tax may apply.

Examples of taxable “sets”:

Matching vases or statuettes

A rare book collection

Antique chess pieces

2. Are You Trading? (aka Running a Side Hustle)

You are probably considered trading (and need to report your income) if you:

Buy items to resell (e.g., flipping car boot finds or stock from wholesalers)

Make products to sell for a profit (e.g., handmade crafts or upcycled furniture)

Sell with the intention of making money, even if it’s part-time

You can earn up to £1,000 tax-free per year via the Trading Allowance. But if your income from selling goods or services exceeds this, you may need to:

Register for Self Assessment

Declare your income and pay any tax due

3. Providing Services Online?

If you offer any service through a digital platform, like:

Food delivery (Uber Eats, Deliveroo)

Taxi driving (Uber, Bolt)

Dog walking, cleaning, tutoring, or repairs

Holiday lets (Airbnb)

And earn over £1,000/year, you may need to:

Register as self-employed

File a Self Assessment tax return

4. Content Creation and Influencing

If you earn income or receive free products, services, or gifts in exchange for promoting content, HMRC counts this as taxable income.

Examples:

Social media influencers

YouTube creators with ad revenue

Bloggers receiving paid-for product placements

Even non-cash perks (e.g., free holidays or high-value gifts) count and must be valued at fair market price.

5. Renting Out Property or Land

If you rent out:

A room in your house (even short term via Airbnb)

A holiday home

Your driveway or parking space

…this income might be taxable. You may qualify for allowances (like Rent a Room relief or £1,000 property allowance) — but it still must be declared.

Use HMRC’s Tool to Check

HMRC has published a simple checker to help you determine whether you need to report online income:

Check if you need to tell HMRC about online income

https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms

You’ll need:

An estimate of your income for the tax year (6 April–5 April)

To know if you share that income with someone else (e.g. jointly owned property)

Info on any other income you receive (employment, self-employment, etc.)

Conclusion

Scenario Do You Need to Tell HMRC?

Selling your old clothes or furniture for under £6,000 Usually not

Selling handmade or upcycled items for a profit Yes, if over £1,000 total income

Renting your spare room through Airbnb Yes, if total income exceeds allowance

Getting paid/gifted as a content creator Yes

Selling an item or set for over £6,000 Possibly – Capital Gains Tax may apply

Using Uber, Vinted, Etsy, Depop, eBay, Airbnb, etc. May be reported to HMRC, even if no tax due

Final Word

Just because your online platform shares your info with HMRC doesn’t mean you automatically owe tax. But if you’re making regular income online — even from a side hustle — it’s worth understanding your responsibilities.

Need advice on what qualifies as “trading,” or want help registering for Self Assessment or claiming the right allowances?

Contact us:

Email: enquiries@wingateaccountants.co.uk

Let’s chat — 0161 531 4179