Individuals who sell secondhand items online could face further scrutiny as the Government looks to fund its spending commitments, accountants have warned.

Rules implemented last year mean online selling platforms such as Vinted and eBay automatically report information about users and their selling habits to the taxman.

Now, even harsher rules could be introduced to fund the Government's 20 per cent cut to business rates for pubs, social clubs and music venues.

The Government's announcement last month said changes to business rates will be funded through the review of relief for businesses that 'do not make a positive contribution to local communities, such as vape shops'.

But Andy Burnham has also pledged to crack down on businesses that sell through online marketplaces that do not comply with their tax obligations.

The Accountancy Partnership warns any changes could potentially affect not only large non-compliant firms but also sole traders selling vintage clothes or trading cards.

'It appears the burden will be placed on the big marketplace giants, so sellers will start to notice changes on the platform,' says managing director Lee Murphy. 

'Any moves will likely build on policies that signal greater transparency to stop HMRC having to chase down individual sellers.'

HMRC already receives data on sales and users for anyone making more than 30 transactions per year on any platform, regardless of value.

For Vinted, HMRC receives data for those selling more than 30 items or earning more than £1,700 from sales over any 365-day period.

However, Murphy predicts the Government will enforce more 'stringent identity verification', including collecting a seller's National Insurance number or unique taxpayer reference.

'Marketplaces like Amazon already require photo ID and regularly re-verify seller information beyond initial account creation, so this may be rolled out more broadly,' says Murphy. 

'While it creates a fair bit more admin work for legitimate sellers, it may also go a long way toward increasing consumer confidence.'

Burnham may consider asking marketplaces to ensure sellers declare they're VAT registered too, allowing them to check it against HMRC's records, too.

'Sellers approaching the registration threshold would be notified of their obligations, increasing marketplace accountability but ultimately placing responsibility with the sellers,' says Murphy.

Most sellers are unlikely to be affected by any further changes to the rules which target more prolific sellers.

Currently, anyone who earns less than £1,000 for selling online within a tax year, does not have to pay tax or declare their income. This is because of the Trading Allowance.

But if you earn £1 more above that allowance, you'll need to notify HMRC.

However, if you're selling secondhand goods like old clothes and books after a clear out you're unlikely to be stung by tax.

This is because you need to be classed as a 'trader' to have these goods included within the allowance. This will depend on how regularly you sell, what you sell and whether you're making a profit.