HMRC is preparing for a tougher approach to individuals who make money from selling online, following the receipt of income information from almost 4 million UK-based online sellers in 2025. This is a huge jump compared with the previous year and shows just how closely HMRC is now watching activity on popular digital platforms.
The figures come from a freedom of information request and show that nearly 4 million reports were sent to HMRC in 2025, compared with around 1.5 million in 2024. The total earnings reported reached almost £55 billion in 2025, more than double the previous year. These reports include a mix of private individuals and businesses of all types.
Since January 2024, websites such as online marketplaces, short‑term accommodation apps, food delivery platforms, private hire apps and content‑sharing sites have been required to collect information on users who earn money through their platforms. They must share this with HMRC if someone makes more than 30 sales a year and earns over £1,700. This is part of an international effort to improve tax transparency across different countries.
HMRC confirmed that it received just over 800 reports directly from UK platform operators last year and received data from overseas tax authorities where UK taxpayers were using international platforms.
HMRC has begun sending “nudge” letters to individuals they believe may not have declared income from online sales, and further checks are expected later this year. To help people understand whether they need to declare anything, HMRC has launched a new online tool on the gov.uk website. This is aimed at anyone who sells goods or services, rents out property or land, creates online content, or earns money from savings, investments or selling property.
Helen Marshall, Private Client Tax Manager at Burgis & Bullock, said: “Many individuals may not realise that selling regularly online can create a tax obligation, even if it starts as a hobby or a bit of extra income.
“HMRC now has far more information at its fingertips, so it’s important that people understand what needs to be declared.”
She added: “The new HMRC tool is helpful, but if anyone is unsure about whether their online activity should be reported, they should seek advice early. Getting ahead of the process is always better than waiting for HMRC to contact you.”
If you would like to discuss any of the issues raised, please contact your local B&B office burgisbullock.com/contact-us/
Helen Marshall, Private Client Tax Manager at Burgis & Bullock
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