HMRC targeting ebay online sellers. If you sell on ebay and other online sites, then be aware HM revenue and Customs may be “knocking” on your door soon!

HMRC have new powers to collect information for an online tax crackdown. They can collect information from internet companies that allow them to identify users who produce income from online sales.

They also want to identify individuals which receive money from renting rooms or properties through online sites such as Airbnb.

HM Revenue and Customs can collect names, addresses and sales from individuals using online sites. With this information they hope to raise an estimated £900 million of additional tax over the next 5 years

If you are making very infrequent sales of items on ebay it is unlikely HMRC will consider you are trading. However, if you are producing profits and you are deemed to be trading then tax will be due. HMRC have additional powers to levy penalties and interest where necessary.

Numerous sellers are being investigated by HMRC for suspected tax evasion following the disclosure of personal information from various websites

If you are in any doubt or just want an unbiased opinion on your position then please do not hesitate to email me at : kevin@kwaccounting.com