HMRC side hustle tax rules, explained
You may have seen headlines about HMRC cracking down on side hustles, and platforms sharing your data. It sounds scary, but the rules are more reassuring than the headlines suggest. Here is what is actually going on.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
What changed
Since 2024, online platforms like eBay, Vinted, Depop and Airbnb have to collect information about their sellers and share it with HMRC once a seller passes a certain level of activity. The first reports went to HMRC in early 2025. It is part of an international agreement, and the platforms are simply following the rules.
It is data sharing, not a new tax
This is the most important point. The rules did not create any new tax. They just make existing income more visible to HMRC. Whether you owe anything is decided by the same rules as always: are you trading, and how much profit do you make.
When a platform reports you
As a rough guide, a platform reports you once you pass around 30 sales or roughly £1,700 in a calendar year, whichever comes first. Under both and you are usually below the line. Being reported only means your details were shared, not that you owe tax.
The tax that might apply
If you are just selling your own used belongings, that is normally not taxable at all. If you are trading, you get the £1,000 trading allowance, and your £12,570 personal allowance on top. Many side hustlers who get reported owe nothing once those are taken into account.
What you should do
Work out whether you are trading. If you are, and your sales are over £1,000, register for Self Assessment by 5 October after the tax year, keep records of your costs, and file by 31 January. If you are only selling your own things, you can usually relax.
Frequently asked questions
Are the HMRC side hustle rules a new tax?
No. They are just data-sharing rules that make online income more visible. Whether you owe tax is decided by the same trading and profit rules as before.
When do platforms report me to HMRC?
Roughly once you pass 30 sales or about £1,700 in a calendar year. Being reported only means your details were shared, not that you owe anything.
Do I owe tax just because I have a side hustle?
Not automatically. Selling your own things is not taxable, and traders get the £1,000 and £12,570 allowances, so many side hustlers owe nothing.
See where you actually stand
Get a rough answer in about a minute with the free calculator, or connect your eBay account to see your real profit and tax.
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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 2026-08-04.