Do you pay tax on eBay?

Selling off your old stuff? You owe nothing. Buying or making things to sell for a profit? That's a business, and it's taxable over £1,000. Here's how to tell which side you're on.

eBay now shares seller data with HMRC, which worried a lot of people — but it doesn't change what's taxable. The only question that matters is whether you're trading or selling your own possessions.

First: are you actually trading?

This is the question that decides everything. Selling your own unwanted things — clearing your wardrobe, loft or garage — isn't taxable, no matter how much it adds up to. You're only taxed if you're trading: buying things to sell on for a profit, or making things to sell.

• Not trading (no tax): clearing out old furniture, gadgets and household clutter you no longer use.
• Trading (taxable if over £1,000): buying to resell (for example buying stock at car-boot sales or wholesale to sell on, or making things to sell).

One exception for personal items: selling a single possession for more than £6,000 — a piece of jewellery or a collectable, say — can bring in Capital Gains Tax. Everyday second-hand items are well below that.

If you're trading, how much tax will you pay?

You're taxed on your profit — what you sell for, minus your costs — not on your total sales. Most online sellers run their shop alongside a job, so here's that case:

A worked example. Say your reselling turns an £8,000 profit over the year, on top of a main job. Your job already uses your £12,570 personal allowance, so the £8,000 is taxed at 20% = £1,600. There's no Class 4 National Insurance yet, because your self-employed profit is under £12,570.

eBay covers everything from old phones to antiques, so watch one extra rule: a single personal item sold for more than £6,000 — a collectable or a piece of jewellery — can bring in Capital Gains Tax even if you're not trading.

If selling online is your only income, the first £12,570 is tax-free, then it's 20% tax and 6% Class 4 National Insurance on profit above that. Our how-much-tax guide has the full breakdown.

If you are trading: costs you can claim

• The cost of your stock — what you paid for what you resell.
• eBay and payment fees.
• Postage and packaging.
• A share of home used to store stock and pack orders.
• Equipment, software and your phone used for the business.

How to file, step by step

• 1. Register with HMRC for Self Assessment by 5 October after the tax year you started. You'll get a UTR (Unique Taxpayer Reference). Here's how →
• 2. Keep records through the year — what you earned, and receipts for what you spent.
• 3. File your return online by 31 January (or on paper by 31 October). The dates that matter →
• 4. Pay what you owe by 31 January.

Common questions

Do I pay tax on eBay sales? Only if you're trading — buying to resell or making to sell — and over the £1,000 trading allowance. Selling off your own unwanted possessions isn't taxable.

eBay reported my sales to HMRC — is that a tax bill? No. Reporting (for 30 or more sales, or around £1,700 a year) just shares data; it doesn't create a tax. Your tax depends on whether you're actually trading.

What expenses can eBay business sellers claim? The cost of your stock, eBay and payment fees, postage and packaging, a share of home used for the business, and equipment and software.

This guide is general information, not personal tax advice. Whether you owe anything depends on your circumstances — chiefly whether you're trading. Figures are for the 2026/27 tax year and can change — always confirm your position on GOV.UK or ask us to check.