HMRC effects £1740 limit

[Davfos]

I get this question a lot, and my answer is always the same…

Enter whatever details you prefer. While this may not be a permanent solution, it typically won’t cause any major issues for a while—if at all.

The reason?
The system isn’t fully automated. If it were, eBay would have integrated it with their API to instantly verify the details against account records, flagging discrepancies right away—but that doesn’t happen. Instead, verification only occurs after you reach a certain threshold. Because of this setup, the process is never automatic. In most cases, they likely don’t review these details until at least once per quarter, or even at the end of the tax year.

There are also alternative approaches, such as setting up a limited company.

[Felics]

Originally Posted by Davfos

I get this question a lot, and my answer is always the same…

Enter whatever details you prefer. While this may not be a permanent solution, it typically won’t cause any major issues for a while—if at all.

The reason?
The system isn’t fully automated. If it were, eBay would have integrated it with their API to instantly verify the details against account records, flagging discrepancies right away—but that doesn’t happen. Instead, verification only occurs after you reach a certain threshold. Because of this setup, the process is never automatic. In most cases, they likely don’t review these details until at least once per quarter, or even at the end of the tax year.

There are also alternative approaches, such as setting up a limited company.

You might be right that it'll take a few weeks maybe even months to check the details but be assured that whilst eBay may not automate for it (why would they? There's no need for them except for providing a data dump to HMRC ) that HMRC will have the ability to check this and they definitely will flag it. How they will follow-up up on this is an easy matter as part of the data provided by eBay is your bank account details which, if real, will easily lead to a follwup. Especially if youre making thousands a year. They will cast their net wide in the hopes of catching something.

[Davfos]

Originally Posted by Felics

You might be right that it'll take a few weeks maybe even months to check the details but be assured that whilst eBay may not automate for it (why would they? There's no need for them except for providing a data dump to HMRC ) that HMRC will have the ability to check this and they definitely will flag it. How they will follow-up up on this is an easy matter as part of the data provided by eBay is your bank account details which, if real, will easily lead to a follwup. Especially if youre making thousands a year. They will cast their net wide in the hopes of catching something.

Yes, but you’ll likely have several opportunities to correct any mistakes before it raises a red flag. People enter incorrect details all the time, and platforms understand that errors happen. They won’t immediately escalate the situation or trigger an HMRC investigation just because of a single mistake—that would be an overreach. At the very least, they are required to give you a chance to correct any inaccuracies before taking further measures.

[Felics]

Originally Posted by Davfos

Yes, but you’ll likely have several opportunities to correct any mistakes before it raises a red flag. People enter incorrect details all the time, and platforms understand that errors happen. They won’t immediately escalate the situation or trigger an HMRC investigation just because of a single mistake—that would be an overreach. At the very least, they are required to give you a chance to correct any inaccuracies before taking further measures.

Agree but thats not my point. It means onces the limits have been breached and details shared, you really won't be able to hide anymore unless your bank details are not yours.

I.e. eBay will share all those details automatically with HMRC (name, add, NI, bank details). Lets say all of those details are stealth (except for bank for obvious reasons), you'll still be able to be identified. They might say, "please update your details" as they don't match any record and if you don't eBay might ban you BUT HMRC won't let it slide as they have your actual details (i.e. from your real bank) and if you're making thousands a year, you can bet that they'll come knocking asking for an explanation.

What I'm getting at is, yes, you can delay ebay and even HMRC doing anything for week or even months. But as soon as they have your info which is automatically shared by eBay once you breach £1740, then its inevitable that there'll be questions from HMRC.

[Davfos]

Yes, HMRC could reach out via the bank to gather information, but how likely is that? With so many platforms, stealth accounts, and sellers operating outside the UK, investigating each one individually would require enormous resources. If the amounts are relatively small (which they should be if you're spreading risk across multiple accounts), it's unlikely to be a priority—but of course, there are no guarantees.

This system is mainly a reporting tool to send data to HMRC. Given the sheer number of people selling thousands of pounds worth of personal items on platforms like eBay, it's unrealistic for them to investigate everyone. With hundreds of thousands, if not millions, of sellers across multiple platforms, HMRC simply doesn’t have the capacity to scrutinise every case.

If you want to maintain a solid account long-term, the best approach is to transition it into a limited company, registering it under a business you control with its own tax information.

[Felics]

Originally Posted by Davfos

Yes, HMRC could reach out via the bank to gather information, but how likely is that? With so many platforms, stealth accounts, and sellers operating outside the UK, investigating each one individually would require enormous resources. If the amounts are relatively small (which they should be if you're spreading risk across multiple accounts), it's unlikely to be a priority—but of course, there are no guarantees.

This system is mainly a reporting tool to send data to HMRC. Given the sheer number of people selling thousands of pounds worth of personal items on platforms like eBay, it's unrealistic for them to investigate everyone. With hundreds of thousands, if not millions, of sellers across multiple platforms, HMRC simply doesn’t have the capacity to scrutinise every case.

If you want to maintain a solid account long-term, the best approach is to transition it into a limited company, registering it under a business you control with its own tax information.

It's extremely likely, this is why the digital sales bill was specifically put in place. Yes there will be bigger fish but, it won't matter if you spread across multiple accounts if they're are all linked to 1 person. HMRC will definitely be going after these guys and I think you have a false sense of security that HMRC will ignore these people. I guess time will tell but I assure you that there is no extra work getting info from banks (which they are legally obliged to provide).

Yes potentially ltd company is the way to go but I can't be arsed with the hassle. But I assure you therell be more than a few people caught out this year.

[Davfos]

Originally Posted by Felics

It's extremely likely, this is why the digital sales bill was specifically put in place. Yes there will be bigger fish but, it won't matter if you spread across multiple accounts if they're are all linked to 1 person. HMRC will definitely be going after these guys and I think you have a false sense of security that HMRC will ignore these people. I guess time will tell but I assure you that there is no extra work getting info from banks (which they are legally obliged to provide).

Yes potentially ltd company is the way to go but I can't be arsed with the hassle. But I assure you therell be more than a few people caught out this year.

It seems like we're looking at this from two different angles. As previously mentioned, this situation can be managed, but if the goal is to reduce or conceal real earnings, that’s a completely different discussion and not one worth pursuing.

For anyone reading this and feeling concerned, it's still too early to say with certainty how things will unfold. However, at this point, the likelihood of it causing immediate issues for anyone’s account is low. As explained before, there are ways to address this if needed, so I wouldn’t be too worried just yet.

[WestHammer]

If my eBay Stealth account points to my real bank account, and HMRC can see the name on my bank account, wouldn't getting a Stealth bank account resolve this issue?

Do people on here still sell bank accounts?

[Freakzilla]

Please tell me this is a joke?

Seriously WTF!

Originally Posted by WestHammer

If my eBay Stealth account points to my real bank account, and HMRC can see the name on my bank account, wouldn't getting a Stealth bank account resolve this issue?

Do people on here still sell bank accounts?

[ft16]

I've noticed some confusion over this issue in this thread and hope I can help people by explaining my view.


First, the facts:

If you opened an eBay account on eBay UK in 2024 and made over 30 sales OR over £1,740 in sales, they would have asked you for your NI number.

If they did, you should have received an email entitled "Your 2024 Digital Sales Report" on approximately 31/Jan/25 informing you they've submitted your 2024 sales to HMRC.

Accounts opened before 2024 which hit these thresholds in 2025 will be required to supply an NI number, and their sales for 2025 will be reported in Jan 2026.


Secondly - My view:

There is no way for eBay to verify an NI number. There is no checksum and they have no access to HMRC systems. If you make a typo, it will still go through (as long as it's in the right format).

As long as you declare the money going into your account as self-employment on your self assessment, HMRC do not care if it came from a stealth eBay account or that you made a typo entering your NI number.

This is a long-term consideration - Self assessments are made in arrears. You have until 31 Jan 2026 to declare any income made on eBay in May 2024, for example.

The only risk to your stealth account is if HMRC tells eBay you have made a typo when you submitted your NI number. As the legislation is purely about e-commerce reporting, I don't believe this is likely in the short term.

Of course, HMRC can look at the bank account payments are going into, but as long as you are paying tax on that income, I can't see you have anything to worry about.

Oh, and while we're on the subject of HMRC looking at bank accounts - if they want to look at your bank accounts without your consent, they have to issue a "Financial Institution Notice" (FIN). Between 1st April 2023 and 31st of March 2024, HMRC issued just 914 of these for domestic bank accounts. It seems unlikely they will be issuing one for every eBay account where someone has made a typo.

In the next 1-2 years, HMRC will likely use the reported data to write to taxpayers who aren't completing a self assessment, reminding them that they should do so, again if you are already declaring the income you have nothing to worry about .

[murdered_by_ebay]

HMRC have had power to look into banks for many years. the only different thing right now will be that bigger sellers will be presented to them on a golden plate , especially sellers liable for VAT and not having VAT registration

if they need the small guy selling some cheap crap? I doubt

[ft16]

Originally Posted by murdered_by_ebay

HMRC have had power to look into banks for many years. the only different thing right now will be that bigger sellers will be presented to them on a golden plate , especially sellers liable for VAT and not having VAT registration

if they need the small guy selling some cheap crap? I doubt

First rule of business, don't **** with the VAT man.

I believe eBay already suspend your account if you hit 90k sales in 12 months until you give them a valid VAT number (which they can verify online)

Honest sellers completing a self assessment are already asked on the form if their turnover was over 90k,

You're right though, if a sellers' turnover over several stealth accounts is more than 90k and they're not VAT registered they're in trouble, and the VAT man moves a lot faster than the self-assessment guys.

[murdered_by_ebay]

ebay automatically restrict all people who are registered in the UK without VAT number on file if they come close to the threshold which is not 90K for sure , it happens earlier

and any people registered abroad without UK VAT number who state UK as item location , here restriction comes within 24-48 hours of first sale

[WestHammer]

If I'm running several accounts, all 100% Stealth, how would the VAT man find out?

I have 4 accounts that made around £30k each in 2024. At a glance none of the accounts are liable for VAT individually.

So id have to be one of the very few that HMRC would "audit" for them to find out. I don't really know too much about tax, but my liabilities would be around 20%-25%? I'm hoping they'd think £6k wasn't worth the effort.

Am I being naive?

[murdered_by_ebay]

there are really enough people to check , it is not only ebay. I appreciate everyone think about themselves they are special but I doubt they all are in the real world

[ft16]

Originally Posted by murdered_by_ebay

ebay automatically restrict all people who are registered in the UK without VAT number on file if they come close to the threshold which is not 90K for sure , it happens earlier

and any people registered abroad without UK VAT number who state UK as item location , here restriction comes within 24-48 hours of first sale

The HMRC VAT threshold is 90k, over a rolling 12 month period, from 1st April 2024, previously it was 85k, your're correct that leeway this only applies to UK residents.

eBay may have lower thresholds, i've always kept my accounts below 70k to be safe and have never been asked for a VAT number.

[Freakzilla]

If they look into it, you are guilty of Tax and Vat evasion. It would be a lot more then £6k. Don't drop the soap!

Originally Posted by WestHammer

If I'm running several accounts, all 100% Stealth, how would the VAT man find out?

I have 4 accounts that made around £30k each in 2024. At a glance none of the accounts are liable for VAT individually.

So id have to be one of the very few that HMRC would "audit" for them to find out. I don't really know too much about tax, but my liabilities would be around 20%-25%? I'm hoping they'd think £6k wasn't worth the effort.

Am I being naive?

[rsot]

Originally Posted by WestHammer

If my eBay Stealth account points to my real bank account, and HMRC can see the name on my bank account, wouldn't getting a Stealth bank account resolve this issue?

Do people on here still sell bank accounts?

No one is authorized to sell bank accounts on this forum - elsewhere, there do exist sellers but it's always a potential fraudulent issue.

[BeachedHead]

Originally Posted by Freakzilla

If they look into it, you are guilty of Tax and Vat evasion. It would be a lot more then £6k. Don't drop the soap!

Sensationalism.

The reality is, the HMRC at this stage, are not going to pursue legal cases against everyone they believe are avoiding various taxes especially not for low under VAT limit levels. Sure they 'may' give you a big old fine if they invest their resources into finding you.

I suspect, with the Police state that Keir wants to create that further down the line there may be increased management and punishments dealt out, but I doubt we won't see that for a while, if ever.

I appreciate you have got yourself very rattled by it and that's half the point of all the press releases, I think many Steathers have been rattled, alongside the tens of thousands airbnbers, etsy sellers, etc...

In reality we know what it will look like for a year or two, and I'll put money on it now we won't see much of anything.

[murdered_by_ebay]

no one can look into it quickly and accuse someone of tax evasion , this must be investigated

the most likely primary target will be the VAT crowd because VAT is the most important tax and it is owed for turnover regardless of any loss or profit

[Freakzilla]

The reality is, you don't know. Nobody does. They have said they have turned over £120k, so that's VAT evasion. HMRC will take that seriously. Do you think HMRC will say "Yeah, it's VAT evasion, but don't worry about it then?" That's just one year as well. How much is it historically?!

I'm not worried at all, because all my accounts are either in mine or my wife's name. Enough things to worry about in life without HMRC being one of them. You want to take the risk go for it mate.

Originally Posted by BeachedHead

Sensationalism.

The reality is, the HMRC at this stage, are not going to pursue legal cases against everyone they believe are avoiding various taxes especially not for low under VAT limit levels. Sure they 'may' give you a big old fine if they invest their resources into finding you.

I suspect, with the Police state that Keir wants to create that further down the line there may be increased management and punishments dealt out, but I doubt we won't see that for a while, if ever.

I appreciate you have got yourself very rattled by it and that's half the point of all the press releases, I think many Steathers have been rattled, alongside the tens of thousands airbnbers, etsy sellers, etc...

In reality we know what it will look like for a year or two, and I'll put money on it now we won't see much of anything.

[Freakzilla]

Well they can. If they receive the data from the marketplaces and the turnover is more then the Vat threshold, and they aren't registered for VAT, it's very easy.

Originally Posted by murdered_by_ebay

no one can look into it quickly and accuse someone of tax evasion , this must be investigated

the most likely primary target will be the VAT crowd because VAT is the most important tax and it is owed for turnover regardless of any loss or profit