Short answer: Selling your own unwanted things on Vinted or eBay is usually not taxable. If you buy or make items to resell for profit, you are trading, and you must tell HMRC once your total trading income passes the £1,000 trading allowance in a tax year.
Online marketplaces now report seller income to HMRC, so more people are asking whether a clear-out or a small shop counts as a business. The answer depends on what you are selling and why. This guide gives you the HMRC tests, the £1,000 allowance and the steps to take if you are over it.
Selling personal items: usually no tax
If you are selling personal possessions, such as clothes you have worn or furniture you no longer need, you probably do not pay Income Tax on the money. Capital Gains Tax can apply if you sell a single item or set worth more than £6,000, but most household sales never get near that.
Trading: when it becomes taxable
HMRC regards you as trading if you regularly sell goods that you bought to resell for profit, or that you made yourself, including hobby crafts. Signs of trading include:
- buying stock in order to resell it;
- selling often and in volume;
- advertising or running an online shop;
- aiming to make a profit, even a small one.
Providing services and creating online content count too, so income from several sources is added together.
The £1,000 trading allowance
You get a £1,000 trading allowance each tax year (6 April to 5 April). It is a threshold, not a rate.
| Your total trading income | What to do |
|---|---|
| £1,000 or less | Usually no need to tell HMRC or pay tax |
| Over £1,000 | Register for Self Assessment and report your income. Either deduct the £1,000 allowance or your real expenses, whichever is better |
The allowance is based on income, not profit. If you earned £1,200 and your real costs were £800, you would probably deduct actual costs instead. Our guide to tax on a side hustle compares both methods. Some platforms report on a calendar year, so you may need to recalculate your figures to the tax year.
What platforms tell HMRC
Under UK digital platform reporting rules, marketplaces such as Vinted, eBay, Etsy and Depop collect details about their sellers and report them to HMRC. Receiving a platform notice does not mean you owe tax. It means HMRC can see your sales, so your return should match.
How to report your sales
- Register for Self Assessment if you are not already. The deadline is 5 October after the tax year in which you started trading.
- Keep a record of every sale, the fees charged and the cost of stock or postage.
- Report income and expenses in the self-employment section. See allowable expenses for the self-employed.
- File by 31 January and pay what you owe. If you miss the registration date, read what to do.
Example
Amira buys vintage clothes for £2,400 and sells them on Vinted and Depop for £5,000, with £450 of postage and fees. Her income is over £1,000, so she registers and reports. Her profit is £5,000 minus £2,400 minus £450 = £2,150, and because that is below her Personal Allowance she may pay no tax, though she still files a return.
Do I need an accountant?
A simple online shop is easy to handle yourself, but many sellers prefer fixed-fee help so the figures match what platforms report. See our tax returns for online sellers page or request a quote.
Real-world examples
- The wardrobe clear-out. You sell 40 pieces of your own worn clothing for £600 over the year. These are personal possessions, so there is normally no Income Tax and nothing to report.
- The car-boot flipper. You buy trainers for £50, sell them for £90 and do this every week. This is trading. Over a year that is around £4,680 of sales (and £2,080 of profit), which is above the £1,000 allowance, so you should register and report.
- The craft seller. You make candles and sell them on Etsy for £3,500 with £900 of materials and fees. Your profit is £2,600. You report it on Self Assessment, and tax is only due if your total income pushes you past the Personal Allowance.
- The occasional collector. You sell a few items from a collection you have built up over years. Whether that is trading depends on the pattern, but a one-off sale of a valuable item may bring Capital Gains Tax rather than Income Tax if it is worth over £6,000.
Selling things you bought to sell later
HMRC looks at the whole pattern, not a single sale. Questions it asks include: did you buy the item with the intention of reselling it, how often do you sell, how organised is the activity, and did you hold stock? If the answers lean towards a business, treat it as one. A genuine hobby that makes a small surplus can still be taxable if it is run in a business-like way, so do not rely on calling it a hobby.
Choosing between the £1,000 allowance and real expenses
When your trading income is above £1,000 you can choose one of two ways to work out profit:
- Deduct the £1,000 trading allowance from your income. This is simple and needs no records of costs, but you cannot claim any other expenses.
- Deduct your actual expenses such as stock, postage, packaging, platform fees and mileage. This is better when your costs are above £1,000.
Example: income £2,400 and costs £300. The allowance gives a profit of £1,400, while actual costs give £2,100, so the allowance is better. Switch the numbers (costs £1,800) and actual costs produce a profit of only £600, so they win.
What if you are also employed?
Your employment pay uses your Personal Allowance first, so profit from selling online is taxed at your marginal rate, usually 20% and National Insurance only applies once your trading profit passes £12,570. If your trading profit is small, your tax may only be a few hundred pounds. Remember to register by 5 October following the tax year in which you started. Our guide to first-year self-employed tax walks through the full process.
Record keeping for online sellers
- Download your sales reports from each platform, including fees and payouts.
- Keep receipts or screenshots for stock, packaging and postage.
- Note which items were sold for personal reasons versus bought to resell.
- Keep records for at least 5 years after the 31 January deadline for that tax year.
- Use a separate bank account or payment account for business sales if you can.
Platform tax summaries are not the full story
Platform statements show gross sales, but they may not include your costs, returns or refunds, and they might follow a calendar year rather than the tax year. Compare them with your own records before you file. If the platform shows a higher figure than you report, be ready to explain the difference.
Next steps
If your sales are small and occasional, keep records and check you are within the allowance each year. If you are trading regularly, register for Self Assessment and file on time. For an easy, fixed-fee return for online sellers, see our page on tax returns for online sellers or get a quote.
Frequently asked questions
Do I have to pay tax on Vinted sales?
Not usually if you are selling your own unwanted items. If you buy items to resell, you are trading and must report income over the £1,000 trading allowance.
How much can I sell on eBay before paying tax?
If you are trading, you can earn up to £1,000 a tax year from all trading income without telling HMRC. Above that, register for Self Assessment.
Does Vinted report to HMRC?
Digital platforms operating in the UK collect seller details and report them to HMRC under platform reporting rules, so your return should be consistent with your sales history.
Do I pay tax on selling second-hand clothes?
Normally no, because personal possessions are exempt from Income Tax. Capital Gains Tax is only a concern for items sold for more than £6,000.
Is the £1,000 allowance per platform?
No. It covers your total trading income across all platforms and any other small self-employed income in the tax year.
Want an accountant to do it for you?
Our qualified accountants prepare and file your return for a fixed fee, agreed before we start. Get a free quote, see our prices or call 0203 4411 258.
Last reviewed 28 October 2026. This guide is general information for UK taxpayers and is not personal tax advice. Scottish income tax rates differ from those shown.
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Accotax is a London firm of qualified accountants and tax consultants, on the ICAEW approved employers list. Our team prepares Self Assessment, landlord and company tax returns every day, and each guide is checked against GOV.UK before it is published and updated every tax year.
Reviewed and kept up to date by our expert team of ICAEW, ACCA and AAT qualified accountants. Last updated . This page is general guidance, not personal advice.
