eBay told HMRC about me. What happens now?

Getting a message that eBay has shared your details with HMRC can make your stomach drop. Before you panic, know this: a report is not a bill, and it does not mean you have done anything wrong. Here is what it actually means and what, if anything, you need to do.

General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.

What the report actually is

Since 2024, online marketplaces like eBay, Vinted and Depop are required to collect seller information and pass it to HMRC once you go over a certain level of activity in a calendar year. It is part of an international agreement to make online income more visible. The platform is simply following the rules. It is data sharing, not an accusation and not a demand for money.

When does it get triggered?

As a rough guide, platforms report you once you pass around 30 sales or roughly £1,700 in a calendar year, whichever comes first. Stay under both and you are usually below the reporting line. It is worth saying again that being over this line only means your details are shared. It says nothing about whether you owe tax.

Reported does not mean you owe anything

Whether you owe tax depends on two things: whether you are trading, and how much profit you make. If you are selling your own used belongings, that is normally not taxable at all, even after a report. If you are trading, you still have the £1,000 trading allowance and your £12,570 personal allowance to set against your income. A lot of reported sellers owe absolutely nothing.

The two dates that cause the confusion

Part of what makes this stressful is that two different timelines get mixed up. The tax year runs 6 April to 5 April, and that is what HMRC taxes you on. The calendar year runs 1 January to 31 December, and that is what the platforms use to decide whether to report you. They do not line up, so a report covering one period does not map neatly onto a tax bill for another. Keeping them separate takes a lot of the worry out of it.

What to do next

Work out whether you are trading or just selling your own things. If you are only clearing out personal items, you can usually relax and do nothing. If you are trading and your sales are over £1,000, you will normally need to register for Self Assessment, report the income and pay tax on any profit above your allowances.

There is no need to do anything the moment a report lands. You have until 5 October after the tax year ends to register, and until 31 January to file and pay. The main thing is not to bury your head in the sand, because missing the filing deadline brings an automatic £100 penalty.

How to check quickly

The fastest way to stop worrying is to see your real numbers: your total sales, your profit after fees and postage, and whether you are over the allowances. FlipTally works this out from your eBay and Vinted figures for free. Whatever you use, remember this is general information, not tax advice, so check anything important with HMRC or an accountant.

Frequently asked questions

This guide is general information, not tax advice, and reflects the UK rules for the current tax year. Always check with a qualified accountant before you file. FlipTally is independent and not affiliated with, endorsed by or connected to eBay, Vinted, Depop or HMRC. Last updated 2026-08-03.