People selling unwanted items online can continue to do so with confidence and without any new tax obligations, HM Revenue and Customs (HMRC) has confirmed.

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.

But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers.

For anyone who is unsure if their additional income could be taxable just search ‘online platform income’ on GOV.UK to use HMRC’s free online tool or download the HMRC app and go to the ‘news’ section under the ‘communication’ tab for more information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.

“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self Assessment.”

Anyone unsure whether to complete a Self Assessment tax return for the 2023 to 2024 tax year or not, can check on GOV.UK. If new to Self Assessment, they can register on GOV.UK.

The new reporting requirements for digital platforms came into effect at the start of 2024.

Those who sold at least 30 items or earned roughly £1,700 (equivalent to €2,000), or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

HMRC said it is working alongside online platforms to ensure sellers receive clear guidance on their tax responsibilities.