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Andy Burnham Wants Online Marketplaces to Do More About Sellers Avoiding Tax

Prime Minister Andy Burnham's government wants online marketplaces to take more responsibility for businesses that sell through their platforms while avoiding their tax obligations.

The proposal was announced alongside a new 20% business rates cut for pubs, social clubs and live music venues in England, which will come into effect from April 2027.

The Government says businesses trading online without meeting their tax obligations can have an unfair advantage over businesses that play by the rules.

So what could this mean for people selling through Whatnot, eBay, Vinted and other marketplaces?

Accountants believe we could eventually see platforms carrying out stronger checks on sellers, potentially collecting details such as National Insurance numbers or Unique Taxpayer References (UTRs).

Marketplaces could also be expected to do more around VAT, including identifying sellers approaching the VAT registration threshold.

For most casual sellers, this shouldn't change much.

Selling your old clothes, games or other unwanted belongings doesn't automatically make you a trader.

The situation is different if you're buying stock specifically to resell for profit. If you're doing that regularly on Whatnot, eBay, Vinted or elsewhere, you're potentially running a trading business and the normal tax rules already apply.

There is also a £1,000 Trading Allowance. If your gross trading income exceeds £1,000 during a tax year, you may need to tell HMRC. That doesn't mean simply selling £1,001 of your old possessions automatically gives you a tax bill.

Nothing announced suggests Burnham is coming after ordinary people clearing out their wardrobes.

The direction instead appears to be towards making the marketplaces themselves do more to identify businesses trading through their platforms without complying with existing tax rules.

For regular resellers, that could eventually mean a few more identity and tax checks when selling online.