HM Revenue and Customs will launch an E-marketplace campaign this spring in an attempt to clamp down on tax evasion on transactions on websites like Autotrader, eBay and Gumtree.
HMRC is concerned there is significant tax evasion throughout online trading websites, according to The Times.
All goods sold online with the intention of making a profit or if goods are sold on behalf of another for commissions should be taxed.
HMRC will be using new software technology to "more accurately" pinpoint people that have defied tax regulations. It will be checking online account information to track high levels of trading and it will also be checking against its own database to see if potential culprits are VAT registered.
Before launching the software and campaing, HMRC said it will be seeking input from affected parties including taxpayer representatives.
It will also be necessary for HMRC to explain to e-traders the borderline between an individual selling one’s own surplus belongings and moving into trading.