HMRC has been criticised for not adequately informing online sellers about the need to file tax returns. Starting in 2025, web platforms will report income to HMRC based on calendar years, complicating tax calculations. The Low Incomes Tax Reform Group (LITRG) highlighted the absence of a standard reporting format, leading to potential confusion among sellers receiving different forms from various platforms. Reports will be issued in January, coinciding with HMRC's peak period. Many sellers mistakenly thought a new tax was introduced, rather than just changes to reporting rules. Sellers can earn up to £1,000 tax-free under the trading allowance, but any income above this may be taxable. An HMRC spokesman stated: "We've recently published and promoted guidance for online sellers and we run an extensive Self Assessment campaign every year, which reminds people to check if they need to file a tax return."
