Do I pay tax on what I sell online?
eBay, Vinted, Etsy, Depop. The answer turns on one question — whether you're selling your own things or running a small business — and a lot of people are worrying about a tax bill they don't owe. Free, no sign-up, and we'll tell you straight if the answer is no.
Clearing out your own wardrobe is not trading, however much it adds up to. There is no income tax on it.
Buying or making things to sell is trading, from the very first sale — and then the £1,000 test applies.
What are you selling?
This is the question the whole answer turns on.
A quick sanity check
These are the questions HMRC would ask to decide whether it is really a clear-out.
Did you buy any of it meaning to sell it on at a profit?
Did you repair, alter or restore things to make them sell better?
Are you doing this repeatedly and systematically, rather than as a clear-out?
What are the numbers?
Gross figures first — the £1,000 test is measured before any expenses.
Gross — everything the buyers paid you, including any postage they paid. This is the figure the £1,000 test uses.
What you paid for the items you sold on, or anything you had to spend to do the work.
What eBay, Etsy, Vinted or Depop took.
Your own postage costs, not what the buyer paid you.
Will HMRC know about it?
Platforms have reported seller data to HMRC since January 2024. Two numbers decide whether you are in it.
A rough count is fine. Across all the platforms you use.
Everything the buyers paid, including postage. The reporting limit is set in euros — €2,000, about £1,700 — so we compare an approximate conversion.
What the rules actually say
Selling your own things is not trading
If you are clearing out clothes, furniture or old gear you once bought to use, you are not running a business and there is no income tax to pay — no matter how much the total comes to. The only route to a liability is Capital Gains Tax, and it can only arise on a single item, or a matching set, sold for more than £6,000 for more than it cost you. Ordinary clothes and household goods are outside it twice over, on value and on lifespan. In practice it means jewellery, a watch, art, an antique or a collectable.
Buying or making to sell is trading from the first sale
There is no grace period and no minimum number of sales. If you bought something intending to sell it on at a profit, or you make things to sell, you are trading immediately. What the £1,000 trading allowance then does is remove the obligation to report small amounts — it is not a period of grace before the rules start, and it is not the same thing as not being in business.
The £1,000 is measured before expenses, and across everything
This trips people twice. It is gross: £1,200 of sales with £250 of platform fees is £1,200 of relevant income, not £950 — that is our reading of the rule that the test comes before any expenses. And it is tested across all your trades added together, so two side hustles bringing in £700 each is £1,400 and reportable. If you go over, you choose either the £1,000 allowance or your actual expenses — never both — and you take whichever leaves you better off.
Being reported is not the same as owing tax
Since January 2024, platforms have sent HMRC details of sellers who made 30 or more sales in the calendar year, or took more than €2,000. You get a copy by 31 January. Services and room rental have no minimum at all — they are reported from the first pound. Appearing in that data does not mean you owe anything, and HMRC says so itself. Plenty of people are reported and owe nothing whatsoever.
Common questions
I sold £3,000 of my own old clothes. Do I owe tax?
No. Clothes you bought to wear and later sold are personal possessions, not trading stock, and they are outside Capital Gains Tax too. Nothing to pay and nothing to report.
eBay says they've reported me. Am I in trouble?
No. Reporting is automatic once you pass 30 sales or €2,000, whatever you were selling. It is information, not an accusation, and it very often concerns people who owe nothing.
Is it £1,000 profit or £1,000 of sales?
Sales. Gross, before fees, postage or what the stock cost you. This is the single most common mistake people make with the trading allowance.
I heard the threshold is going up to £3,000.
It was announced, but there is still no start date and no legislation. £1,000 remains the figure that applies. It is also a reporting threshold rather than tax-free income, so it would not mean £3,000 free of tax.
What can I claim as an eBay, Etsy or Vinted seller?
Stock, fees, postage, packaging — and the things sellers wrongly assume they can claim.
Open the calculator → GuideSelling on eBay, Etsy or Vinted: the full guides
The long read for each platform — what counts as trading, the £1,000 test and what to keep.
Read the guides →- Tax-free allowances on property and trading income — GOV.UK
- Selling goods or services on a digital platform — GOV.UK
- Check if you need to tell HMRC about income from online platforms — GOV.UK
- Badges of trade — HMRC BIM20205
- Digital platform reporting de minimis — HMRC IEIM901630
- Capital Gains Tax on personal possessions — GOV.UK
Figures are for the 2026/27 tax year. This is general information rather than personal tax advice — if your situation has anything unusual in it, ask us and we'll check it properly, free.
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