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Buying and selling through online platforms can in many cases be trading¹, though selling some unwanted items occasionally with no plan to make a profit is unlikely to be so². See Division B1.4 for rules to identify whether there is a trade. The £1,000 trading allowance (see B2.113) was, in part, introduced to cater for internet sellers who make small annual profits as it avoids the need for them to register for self-assessment where there is no other requirement to do so.

The government has expressed concerns that online traders were not aware of their tax obligations and has therefore issued regulations (detailed below) which mean that details of online sellers and their online trading activities will be collected by the digital platforms and submitted to HMRC and other tax jurisdictions. Copies of the information will also be provided to the sellers to enable them to ensure compliance with their tax obligations. HMRC has also issued guidance to users of online platforms to check if they need to report their income to HMRC,