In this week’s Enews, we look at HMRC’s latest guidance on tax obligations for online sellers. There is also news on the fall in business confidence over the past quarter and the latest Advisory Fuel Rates to update you on.

• No tax changes for online sellers
• Optimism amongst business leaders 'approaching Covid lows'
• Advisory fuel rates for company cars

People selling unwanted items online can continue to do so without any new tax obligations, HMRC has confirmed.

The reminder comes as online platforms start sharing sales data with HMRC from January 2025 – a new process that, when announced last year, generated inaccurate claims that a new tax was being introduced.

But whether selling last year’s festive jumper, getting some money back for a child’s outgrown baby clothes, or quietly offloading an unwanted Christmas present or two – absolutely nothing has changed for online sellers.

The new reporting requirements for digital platforms came into effect at the start of 2024. HMRC says that it is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed. 

Those who sold at least 30 items or earned roughly £1,700 or provided a paid-for service, on a website or app in 2024 will be contacted by the digital platform in January to say their sales data and some personal information will be sent to HMRC due to new legal obligations.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive Officer, said:

‘We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.

‘As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for self assessment.’

Internet link: HMRC press release

Optimism amongst the UK’s business leaders has fallen to the lowest point since the height of the pandemic, according to the Institute of Directors (IoD).

The IoD’s survey found that business leader confidence in the UK economy fell from -52 in October to -65 in November 2024, bringing optimism close to its record low in April 2020.

UK economic conditions were the most significant concern for the IoD’s members with 73% citing it.

Employment tax has replaced skills and/or labour shortages as the second biggest concern, with double the number of respondents citing it compared to August’s survey.

Anna Leach, Chief Economist at the IoD, said:

'This is a sobering set of results. As businesses continue to absorb the consequences of the Budget for their business plans, confidence has continued to plummet and is approaching the lows reached at the onset of the Covid pandemic.

'Far from fixing the foundations, the Budget has undermined them, damaging the private sector's ability to invest in their businesses and their workforces.

‘The clash between government intentions to address inactivity and the sharpness of the increase in employment costs is jarring. Likewise welcome attempts to improve the environment for investment in the UK sit at palpable odds with a significant hit to profits which will undermine private sector investment.

‘There’s now a significant risk of growth stalling across the private sector due to the extent of the reset required by business.’

Internet link: IoD website

New company car advisory fuel rates have been published and took effect from 1 December 2024.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 December 2024 are:

Engine size	Petrol
1400cc or less	12p
1401cc - 2000cc	14p
Over 2000cc	23p

Engine size	Diesel
1600cc or less	11p
1601cc - 2000cc	13p
Over 2000cc	17p

Engine size	LPG
1400cc or less	11p
1401cc - 2000cc	13p
Over 2000cc	21p

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 7p per mile.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR