UK digital sales reporting to HMRC
Digital platforms and online marketplaces in the UK, such as Mage, are required to comply with the UK digital sales reporting legislation, implemented in the UK by The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023. You can read the reporting rules for digital platforms here.
If you meet certain thresholds, Mage is legally required to report both your sales transactions and certain personal or business information to HMRC. Starting January 2025, the prior year's information will be annually reported to HMRC each January, and a copy of the reported data will be provided to you.
Mage will report this information should you meet either of the following thresholds within the calendar year:
- You complete 30 or more sales transactions on Mage (cancelled or refunded transactions are not included in the calculation).
- Your total sales on Mage is equal to or more than £1,700.
Mage will notify you when you have crossed these thresholds.
IMPORTANT
UK digital sales reporting requirements do not change your existing tax obligations or create new tax obligations for you. This is not a new side hustle tax. UK digital sales reporting legislation does not create any new tax obligations or affect current ones.
“If you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax.
If you buy goods for resale, or make goods with the intention of selling them for a profit, then you are likely to be trading and will have to pay tax on your profits.
However, if your total income from trading or providing services online was less than £1,000 (before deducting expenses) in any tax year, you would not be required to inform HMRC nor pay any tax on the profits (this is due to the Trading and Miscellaneous Income Allowance).”
You remain responsible for determining whether your Mage sales are subject to tax and complying with all relevant reporting obligations that may arise from your activities on Mage. We recommend you review this HMRC guide, reach out to HMRC or consult a tax advisor if you have any questions about your tax obligations.
Providing your tax identification information
The table below illustrates the specific tax identification information needed if you reached the thresholds above, including the format and guidance on where to find it:
| Individuals and Sole Proprietors | Registered companies, Limited Partnership and Limited Liability Partnership | General partnerships | |
|---|---|---|---|
| Tax identifier | National Insurance (NI) number | Company Registration number (CRN) | Unique Taxpayer Reference (UTR) |
| Format | XX999999X - Two prefix letters, six digits and ending in one suffix letter. | A CRN consists of 8 numbers or 2 letters followed by 6 figures. The exact combination depends on the company structure and where it is incorporated. Limited companies incorporated in England & Wales are always assigned 8-number CRNs. | 9999999999 (10 digits) |
| Where can I find it |
|
|
|
| How do I apply for one? | For more details, please visit the Apply for a National Insurance number page on gov.uk | Company registration numbers are assigned automatically when businesses incorporate. | For more details, please visit the Self Assessment: register a partnership for Self Assessment (SA400) page on gov.uk |