HMRC Platform Reporting: What's Shared, When, and What to Do

Last updated: May 2026 · 7 min read

From 1 January 2024, HMRC requires online platforms to report seller data directly. This page explains what's reported, the thresholds that trigger reporting, what data HMRC receives, and what to do if you get a "nudge letter."

What the rules actually are

The UK implemented OECD's "Model Reporting Rules for Digital Platforms" (Schedule 23A FA 2011 / DAC7-aligned) effective 1 January 2024. They require digital platform operators based in the UK, or with UK sellers, to:

1. Identify reportable sellers (verify ID, residency, tax reference numbers)
2. Report annually to HMRC by 31 January following the calendar year
3. Provide a copy of reported information to the seller

Which platforms are reportable

Any digital platform that connects sellers with buyers and processes payment for one of these "relevant activities":

• Sale of goods (Vinted, eBay, Etsy, Depop, Amazon Marketplace, Facebook Marketplace, Gumtree, etc.)
• Provision of personal services (Fiverr, Upwork, TaskRabbit, etc.)
• Rental of immovable property (Airbnb, Vrbo, SpareRoom, Booking.com host listings)
• Rental of any mode of transport (Turo, Hiyacar, etc.)

Note: traditional employment platforms where the worker is employed (e.g. Uber post-Supreme Court ruling for some classifications) have a different treatment.

The reporting thresholds

A seller's data is reported if, in a calendar year, they:

• Made 30 or more "relevant activities" (transactions/sales/lets), OR
• Earned €2,000 or more (about £1,735 at exchange rates around the cap)

It's "either/or", you don't need to cross both. Most active sellers easily cross the 30-transaction line.

What data is reported

• Full legal name
• Primary address
• Date of birth
• Tax Identification Number (your UTR if you have one, or NI number)
• Bank account details (where payments are sent)
• Total consideration paid in each calendar quarter
• Number of relevant activities in each quarter
• Any fees, commissions, or taxes withheld by the platform

For property rentals, additional data is reported including the address of each let property and number of rental days.

Timeline of reporting

Note: HMRC's calendar-year reporting doesn't align with the UK tax year (April-April), so platforms report figures that span two tax years, HMRC reconciles this.

Crossing the threshold ≠ owing tax

Important: having your data reported to HMRC does not mean you owe tax. Plenty of sellers cross the threshold while clearing out their own personal possessions, which isn't taxable trading income. The threshold is just the trigger for HMRC to receive data; whether tax is owed depends on whether you're trading and what your trading profit is.

The "nudge letter"

If HMRC's data matching flags a discrepancy, reported income but no Self Assessment, or large reported income that doesn't match what you declared, they send a nudge letter. These are not formal investigations. They typically say something like:

"We have information that you may have received income you have not declared. Please review your records and confirm whether you need to amend your return or make a disclosure."

Three response paths:

1. You owe nothing: respond confirming you've reviewed and have no undeclared income. Brief explanation (e.g. "I sold personal possessions for less than I paid; I am not trading"). Keep records.
2. You owe tax: use HMRC's Digital Disclosure Service to declare. Penalties are reduced for unprompted voluntary disclosure.
3. You're unsure: get a one-off accountant consultation (£75 to £150 typically). Cheaper than a wrong answer.

What to do if you've never declared past years

If you've been trading on platforms for years and never declared, the safest path is voluntary disclosure now, before HMRC writes. The penalty regime distinguishes:

• Unprompted disclosure: 0% to 30% of additional tax for careless errors
• Prompted disclosure (after HMRC contact): 15% to 30%
• Deliberate: 35% to 100%
• Deliberate & concealed: 50% to 100% plus possible criminal action

Use the Digital Disclosure Service or get an accountant to handle a proper disclosure for you.

FAQs