HMRC have issued two one-to-many letters covering those they believe are trading and have taxable income connected with online marketplaces or online content creation.

These letters request that potential taxpayers should:

  • Complete a ‘Certificate of tax position’ within 30 days which requires the taxpayer to confirm that either:
    • They will bring their tax affairs up to date.
    • Their tax affairs are up to date.
    • Their income has not been declared.
  • Submit a Notification of Intent to disclose any income which has been previously undeclared using HMRC’s Digital Disclosure Service.

These letters form part of a campaign that includes several departments within HMRC and will continue throughout the coming year.

Useful guides on this topic

Badges of trade: Are you trading or not?
Are you trading, running a business, or just buying and selling investments? The 'Badges of Trade' are a set of indicators, built up over time by the courts, to decide when an activity is a trading or investment activity.

Influencers: What expenses can I claim?
What expenses can online influencers claim for tax purposes? Are there special rules? What are the rules for VAT for online influencers? 

Registering for Tax: Self-employment (freeview)
You are self-employed, you have started working for yourself, what do you need to do now? How to register for tax. When do you pay tax? What records do you keep?

What expenses can I claim?
Different tax rules apply for different types of expenses. These guides summarise the rules, advise you on planning points and tax-traps and with worked examples illustrate what you can and can't claim.

Making a disclosure (Digital Disclosure Service)
A practical guide to making a tax disclosure using HMRC's online system.

External links

Income you have earned from Online Marketplace sales

Income you have earned from creating content on digital platforms

CIOT guidance on completing Certificates of Tax Positions (offshore assets income or gains)

Further CIOT guidance on completing Certificates of Tax Position (UK property interest)

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