UK HMRC Reporting - What do I need to know?

Starting January 1 2024, online marketplaces like Depop are required by HM Revenue and Customs (HMRC) to collect and report personal details and yearly sales transactions for the previous calendar year, in respect of sellers that meet the reporting threshold.

 

UK sellers who make over the threshold set by HMRC will be covered by reporting under these new rules. In order to meet these reporting requirements, Depop is required to collect and verify certain additional information for these sellers, and report it along with the sales data.

 

For individuals, we are likely to request information such as:

  • Your first and last name, and your date of birth
  • Your primary residential address
  • Your Tax Identification Number 

 

For legal entities, we are likely to request information such as:

  • Legal/shop name
  • Primary address
  • Your Tax Identification Number
  • Your Business Registration Number 

 

We will be required to file our first report in January 2025, for sales made during the calendar year 2024.

 

How do I know if I’m impacted by reporting requirements?

All sellers who meet HMRC’s reporting threshold will be included in the report. To keep track of your sales, you can use the Shop Stats feature to download your sales report.

 

We’ll reach out to all sellers covered by the reporting later on in the year with more information on what they need to know or do; and we’ll update this page with further details as we have them.

 

How will I know what data you’ve reported?

A copy of your data will be provided to you once it’s been filed with HMRC, so you’ll know exactly what was sent.

 

Does this mean I have to pay tax on my sales?

If you do meet this threshold, this doesn’t necessarily mean you need to pay tax. Only profits from trading secondhand items are potentially taxable, so if you’re using Depop to sell your own personal possessions then you likely won’t need to pay tax.

 

For example, say you purchased items of clothing for a total of £3,500 in 2023 and sold them for £2,500 in 2024. Depop would have to report the £2,500 less Depop fees to HMRC, but you  would have no taxable income to report since the resale amount is less than the original purchase price. 

 

However, everyone’s situation is different, and it’s worth keeping records of your finances (i.e. receipts) just in case you need them at a later stage. If you have questions about your taxable income, it’s best to work with a tax professional or contact HMRC directly.

 

You may also find these additional HMRC links useful:

Selling Online and Paying Taxes - Information Sheet

HMRC Mythbuster (Via X.com)

Additional Income Checker



All guidance provided by Depop on this topic is for informational purposes only and should not be considered financial or tax advice. Please consult a tax expert or HMRC directly if you have any questions.

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