Gen Z side hustle earnings from eBay and Depop to be declared to HMRC

Britain’s tax body, HM Revenue & Customs, has told online or app retailers they’ll need to divulge the income of users on their platforms beginning Jan. 1—irrespective of whether individuals are selling clothes on Depop or room rentals on Airbnb.

The new law also applies to sellers who don’t declare their income from online sales, subjecting them to HMRC’s crackdown if they’re discovered via disclosures from the platform. The rule applies to individuals who make more than £1,000 a year in income through online platforms. 

Previously HMRC was able to request specific information from U.K.-based online operators on an ad-hoc basis, however the new system will make the availability of this information more uniform internationally. Firms will have to report information at the end of January 2025.

“These new rules will support our work to help online sellers get their tax right first time. They will also help us detect any deliberate non-compliance, ensuring a level playing field for all taxpayers,” an HMRC spokesperson told Fortune in an email.

How might this impact online sellers? 

Gen Z, the oldest of whom will turn 27 in 2024, has enjoyed side hustles as a way to create an additional stream of income which many have come to rely on. However, even if online sales aren’t regular earnings, HMRC suggests individuals use its self-assessment tool to be sure. 

This could mean the ramifications of the new law may only impact a select few sellers, Vinted’s chief executive Adam Jay told the BBC.

“It’s actually quite a small proportion of users of our platform who will trigger this threshold where we need to provide information,” he said. “It’s only…