HMRC is increasing its focus on individuals earning income through online platforms, following the receipt of significant new data covering almost four million sellers – a substantial increase on previous years.
New figures show that £55bn of income from online marketplaces, rental platforms, and content-sharing sites was reported to HMRC for the 2025 calendar year – more than double the £25.5bn reported in 2024. This development is expected to drive increased compliance activity, particularly for individuals with undeclared or under-declared side-hustle income.
What has changed?
Since 1 January 2024, digital platforms have been required to report seller activity to HMRC where users are:
- Making more than 30 sales per year; and or
- Generating over £1,700 in income
This has significantly increased HMRC’s visibility over online trading activity, providing access to detailed data on millions of users.
The latest figures show that HMRC received reports on just under 4 million sellers in 2025, up from 1.5 million in 2024 – a substantial rise reflecting the new reporting requirements.
What data has HMRC received?
The data covers income generated via:
- Online marketplaces (e.g. resale platforms)
- Property rental platforms
- Content creation and sharing platforms
HMRC confirms the data includes both individuals and entities, such as companies, partnerships, trusts, and charities.
In addition to UK reporting, HMRC also receives information from overseas tax authorities, further widening its access to global income data.
What does this mean for taxpayers?
Although HMRC now holds significantly more data, the underlying tax rules have not changed.
In general:
- Individuals can earn up to £1,000 per year from trading or miscellaneous income before tax may be due
- Earnings above this threshold may need to be declared via Self Assessment
HMRC has indicated that this data will be used to support future compliance activity, including targeted enquiries and campaigns.
Increased compliance activity expected
HMRC has already begun contacting individuals involved in online selling through targeted letter campaigns.
Compliance checks are expected to increase as HMRC develops systems to analyse and match the newly acquired platform data. This approach forms part of HMRC’s wider strategy to close the tax gap through improved use of third-party information.
What should you do?
If you generate income from online platforms, it is important to:
- Review whether your activities constitute trading
- Check whether you have exceeded the £1,000 trading allowance
- Ensure all taxable income has been accurately declared
- Bring any historic tax affairs up to date if required
Taking proactive steps now can help you avoid penalties and simplify any future HMRC enquiries.
How we can help
Understanding tax obligations across multiple platforms can be complex.
If you are unsure whether your online income needs to be reported – or need assistance reviewing and updating past tax affairs – our team can help you assess your position and ensure compliance with HMRC requirements.
