Ok, just read a little bit on this. It seems letters have been sent to 32,500 people who buy on ebay to sell on at a profit on ebay. eBay Traders in HMRC Tax Spotlight HMRC’s ongoing crackdown on tax dodgers is targeting regular eBay traders and those who buy items to sell them on at a profit. If you are a regular eBay trader and haven’t been declaring your income it may lead to a very unpleasant surprise. It is believed that HMRC have written to 32,500 people who haven’t paid all the tax they owe. From May 3rd letters should land on doormats which will allow eBay traders the chance to pay up now and benefit from reduced penalties. If sellers fail to come forward and HMRC has evidence they have not paid the right amount of tax, they will be hit with a much higher tax penalty and could face potential criminal proceedings. Those who fail to come forward by the 14th June deadline outlined in the letter face a penalty of between 40% and 100% of the tax due, as opposed to just 10% or 20% if they put things right now. eBay traders are the latest group to be targeted by HMRC, which has previously had in its sights plumbers, doctors, dentists, home tutors, market stall holders, car sales people and those with money offshore. Marian Wilson, head of HMRC Campaigns, said: “This campaign is part of a wider HMRC initiative to provide support and guidance to the public on tax evasion and is aimed at people using online marketplaces to buy and sell goods as a trade or business and who fail to pay the tax owed.