Selling on eBay, Vinted or Etsy: do I pay tax?
Usually not, if you're just clearing out your own things. You only pay tax on online sales if you're trading (buying or making things to sell for a profit) or you make a taxable capital gain. A platform telling HMRC about your sales doesn't by itself mean you owe anything.
Selling your own unwanted things
Clothes, toys, furniture, phones, the contents of the loft: if they were yours, for your own use, you probably don't pay Income Tax when you sell them. That's true however many items you sell, as long as none is worth more than £6,000.
The £6,000 rule. If you sell a single personal possession for £6,000 or more, you may have to pay Capital Gains Tax on the gain. A set of things, like matching vases, a chess set or books by the same author, counts as one item. Your car is exempt, and so are most things with a lifespan under 50 years, such as machinery.
When it becomes trading
You're probably trading if you sell goods that you:
- bought intending to sell for a profit, for example from car boot sales, charity shops or importing
- made yourself, even as a hobby, like crafts on Etsy or upcycled furniture
Services count too: dog walking, tutoring, gardening, cleaning, food delivery, and income from online content.
The "badges of trade"
HMRC weighs up these signs. No single one decides it. It looks at the overall picture.
Profit motive
Did you buy it intending to sell at a profit?
How often
Regular, repeated sales point to trading.
The item itself
Did you enjoy using it, or was it only ever for selling?
Similar to a trade
Is it like a business you already run?
Changes made
Did you repair or improve it to sell for more?
How it was sold
Like a shop would, or a one-off sale to raise cash?
How it was paid for
Did you borrow to buy it, and need the sale to repay?
How long you kept it
Quick resales suggest trading. Things kept for years less so.
How you got it
A gift or inheritance is less likely to be trading stock.
The trading allowance
If you are trading, the first £1,000 a year of trading income is tax-free. That's income before costs, from all your trading added together (selling, services, content).
- £1,000 or less in the tax year: you usually don't need to tell HMRC. Keep a record of what you took.
- More than £1,000: you need to register for Self Assessment and file a return. You can then take off either the £1,000 allowance or your actual costs, whichever helps you more.
| Tax year | Trading allowance |
|---|---|
| 2025-26 (the return due 31 January 2027) | £1,000 |
| 2026-27 | £1,000 |
| 2027-28 onwards (from 6 April 2027) | £3,000 (announced at Budget 2026) |
Budget 2026 announced the rise to £3,000 from 6 April 2027. The point at which trading income needs a tax return goes up to £3,000 too. It still has to be passed by Parliament in the Finance Bill 2026-27. See upcoming changes.
Example
In 2025-26 you bought clothes at charity shops and resold them on Vinted for £2,400. They cost you £900, plus £150 postage. Your profit using real costs is £1,350. Using the trading allowance instead, it's £2,400 - £1,000 = £1,400. Real costs give the lower figure, so you'd use those. You need to file a 2025-26 return, because £2,400 is over £1,000.
What platforms tell HMRC
Since 1 January 2024, online platforms have to collect details about their sellers and report them to HMRC each year. For an individual that means your name, address, date of birth and National Insurance number, plus what you earned on the platform in the calendar year.
- Each calendar year's figures go to HMRC by the following 31 January. For example, sales in 2025 were reported by 31 January 2026.
- You aren't reported if you make fewer than 30 sales of goods in a calendar year and receive less than €2,000 (about £1,700) for them.
- The platform must give you a copy of what it reported.
Being reported doesn't mean you owe tax. If you're clearing out your own things, there's usually nothing to pay. If you're trading, work out your income for the tax year (6 April to 5 April), not the calendar year the platform uses.
Not sure?
GOV.UK has a tool to check if you need to tell HMRC about income from online platforms. You can also use our Do I need a tax return? checker.
Over £1,000? The calculator works out your side-business profit, tests the trading allowance against your real costs, and fills in the self-employment pages for you.
Work out my figures - freeSources
- GOV.UK: Check if you need to tell HMRC about your income from online platforms
- GOV.UK: Selling goods or services on a digital platform
- GOV.UK: Tax-free allowances on property and trading income
- HMRC: Income Tax, increasing the trading allowance (Budget 2026)
- GOV.UK: Capital Gains Tax on personal possessions
- HMRC Business Income Manual BIM20205: badges of trade
General guidance, not tax advice. Whether you're trading depends on all the facts. If it's borderline, ask HMRC or an accountant.