HMRC knows about your side hustle. Here is what platforms now report
HMRC no longer relies on you to volunteer information about your side income. The platforms report it for them.
Before HMRC writes to you
Free PDF: The Second Income Tax Pack 2026/27
The £1,000 rule, every 2026/27 deadline, what to set aside and how to report it.
Side hustle tax in the UK: what changed
Since January 2024, digital platforms operating in the UK have been required to collect and share seller data with HMRC. That includes eBay, Vinted, Etsy, Depop, Airbnb, Uber and Deliveroo. The first full reports landed with HMRC in January 2025. The data now flows every year.
The reporting trigger
Platforms report you to HMRC if you cross either of two thresholds in a calendar year:
- 30 or more sales, or
- roughly £1,700 in total sales (the rule is set at 2,000 euros)
Cross either line and the platform sends HMRC your name, address, bank details and total income from the platform.
Being reported is not the same as owing tax
This is the part most coverage gets wrong. The reporting threshold and the tax threshold are different things.
You only need to tell HMRC about trading income if it exceeds the £1,000 trading allowance in a tax year. Selling your own unwanted clothes on Vinted is generally not trading at all. Buying items to resell at a profit is.
The distinction is intent. Clearing out your wardrobe: not taxable. Sourcing stock to flip: taxable trade.
Earning on the side? Get the tax pack
Sixteen pages: the trading allowance, the registration test, the 2026/27 calendar, payments on account, Making Tax Digital and a twelve-point checklist. Nothing to buy.
Get the free tax pack →What to do if you are trading
- Track your gross income per tax year (6 April to 5 April)
- If it exceeds £1,000, register for Self Assessment by 5 October following the end of that tax year
- Keep records of income and expenses. Bank statements, platform statements, receipts
- File and pay by 31 January
Why this matters for employed professionals
If you are building a parallel income while employed, assume HMRC can already see it. That is not a reason to stop. It is a reason to run it properly from day one.
A side income with clean records is a business. A side income with no records is a future penalty.
The professionals who treat their parallel income seriously from the first £100 are the ones still running it at £10,000.
Build first. Build properly.
Related reading
- →When do you legally have to tell HMRC about your side income?
- →The £1,000 trading allowance explained, and the new £3,000 reporting threshold
- →Making Tax Digital for income tax: what a UK side income needs to know
- →The 90-day rule: testing a side income without burning out
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This article is general information, not tax, legal or financial advice. Rules and thresholds change; check GOV.UK or speak to an accountant about your own position before you act.
Build first. Leave second. Choose third. Start with the assessment →