Data Platform Reporting Requirements

As of January 1, 2024, HMRC introduced new rules for Digital Platform Reporting for UK companies.

What Data Do We Collect?

The new regulations require us to collect the following information if you sell with us:

  • For individual sellers:

    • Full name

    • Home address

    • Tax Identification Number (e.g. UK National Insurance number)

  • For entities:

    • Legal business name

    • Business address

    • Company registration number

    • Tax Identification Number (e.g. UK VAT number)

Why Are We Collecting This Data?

The Digital Platform Reporting regulations require us to report information to HMRC on an annual basis on sellers based in a Reportable Jurisdiction. Click the link to check whether this applies to you: IEIM901820 - Reportable Jurisdiction.

If you are domiciled outside of a Reportable Jurisdiction, we are not required to report your information. However, we must collect this information initially to assess whether you fall within or outside of a Reportable Jurisdiction.

For those who fall within a Reportable Jurisdiction, HMRC has established a de minimis threshold, meaning we are not required to report on seller information if both of the following apply to you:

  • make fewer than 30 sales of goods in a year, and

  • receive less than €2,000 (approximately £1,700) for those sales

For further guidance, please visit: Selling goods or services on a digital platform - GOV.UK.

This reporting requirement imposed by HMRC is not designed to penalise individuals selling personal items to recover their original value. Instead, it ensures that those who regularly resell items for profit as a primary source of income accurately disclose their earnings in their self-assessment tax returns.

These regulations do not change your personal tax or reporting obligations. You can find more details on HMRC guidelines here.

For more information on the Digital Platform Reporting regulation, please visit:Reporting rules for digital platforms.

Frequently Asked Questions (FAQs)

  1. Will the side hustle tax affect me if I wanted to sell some unwanted items to Luxury Promise?
    If you are simply clearing out unwanted items and putting them up for sale, you will not need to pay tax, so long as you are selling the items for less than what you originally paid for them.
    However, if you are trading (buying to sell items for a profit) and earning over £1,000 a year from it, you’ll need to tell HMRC and may need to pay tax on the money you make.

  2. Do I need to pay tax on items I’ve sold for under £1,000 in total over a year?
    No, the trading allowance is a tax exemption that means you can make up to £1,000 working for yourself (selling items or any other side hustle) in each tax year without having to declare these earnings to HMRC.

  3. I’m selling a brand new Hermes bag that I purchased and will be making a profit, do I need to pay tax on this?
    If you are buying with the intention of selling for a profit, this would be considered trading for tax purposes and if your total income is more than the £1,000 trading allowance for the tax year, you’ll need to report this to HMRC. Therefore, it is likely that you will need to pay tax on this.

For more information on the side hustle tax, please visit: Tax Help for Hustles

The information provided in this FAQ is for general informational purposes only and should not be considered tax, legal, or financial advice. Tax obligations vary based on individual circumstances and jurisdictions. We recommend consulting a qualified tax professional or financial advisor for guidance specific to your situation.