HMRC letter to sellers using online marketplaces

HMRC have issued letters to people they believe have earned income from selling via online marketplaces, which they have not declared. 

The campaign covers tax years up to and including the year ended 5 April 2023, and asks recipients to declare previously unreported income where they have tax to pay.   

Not all online marketplace sales will result in a tax liability - occasional sales, such as when having a clear out at home, are unlikely to result in a tax liability. 

HMRC have published guidance on whether online marketplace income may be taxable, which includes a questionnaire to help taxpayers check their specific circumstances.  Our previous article about tax issues relating to online marketplace sales considers some scenarios when online sales may, or may not, create a tax liability. 

With HMRC's permission, we are able to share a template copy of the letter which online sellers may receive. If recipients of the letter have an authorised agent, we understand the agent will not receive a copy.