Data sharing between HMRC and online platforms from HMRC is NOT a new tax!

Data sharing between HMRC and online platforms from HMRC is NOT a new tax!

Despite a supposed ‘uproar’ earlier this year after the mandatory requirement for online platforms to share data with HMRC about their users’ sales, there will be no new tax changes for influencers, and those selling online.

HMRC are launching a publicity campaign to alert online sellers to the new rules, while stressing that the fundamental tax rules are not changing and HMRC have stated ‘The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced.’

Therefore, any tax owed by online sellers would have been due regardless of the data sharing, which covers platforms operating across the UK and EU member states. The new system means it will be easier for HMRC to find out whether someone has taxable income with detailed information on hand about individual taxpayer activity for the first time.

From January 2025 sellers using digital platforms such as eBay, Airbnb, JustEat, and streaming platforms will be contacted by the platform to notify them that their data is going to be shared with HMRC. However, this will only apply to those who have earnt £1,700 through the particular app service in 2024.

If a seller receives an alert from the platform, it will not mean that they necessarily owe tax, even if the pop up appears on an app. Tax will be owed if a total income of £1,000 has been generated before deducting expenses, or if the intention was to sell to make a profit.

If you are not sure what you should do or need assistance with a personal self-assessment tax return, please get in touch with us here at Kennedys Accounting, we will be pleased to assist you.