UK simplifies tax reporting for online sellers

HMRC is set to introduce a simplified tax reporting system for individuals selling on platforms like eBay and Vinted. Currently, anyone earning over £1,000 must complete a self-assessment tax form. This limit may increase to £3,000. By 2029, a new online declaration form will be available for those earning under £3,000, easing the reporting process for around 300,000 people. Online marketplaces will now share transaction data directly with HMRC, streamlining the information exchange. Sellers who meet certain thresholds, such as selling at least 30 items or earning around £1,700, will have their sales information sent to HMRC. However, this does not automatically imply tax liability, as it depends on the nature of the sales.