This is general information, not tax advice. Rules can change — check GOV.UK or speak to an accountant about your situation.
Selling your own things vs trading
Selling your own unwanted possessions — clearing out your wardrobe, for example — is generally not trading, and you usually won’t owe Income Tax on it.
Buying items to resell for a profit is different. If you regularly buy things from charity shops or car boot sales intending to sell them for more, HMRC is likely to treat that as trading, and the profit can be taxable.
The £1,000 trading allowance
You can earn up to £1,000 a year in gross trading income (before expenses) tax-free under the trading allowance. If your trading income is £1,000 or less, you generally don’t need to tell HMRC about it.
If your income goes over £1,000, you’ll usually need to register for Self Assessment and report it. You can then either deduct the £1,000 allowance or your actual expenses (stock, postage, fees, packaging and so on) — whichever is better for you.
Marketplaces now report sellers to HMRC
Since January 2024, online platforms like Vinted, eBay and Depop collect information about sellers and report it to HMRC. Reporting applies to sellers who make 30 or more sales, or earn about £1,700 or more, in a calendar year.
Being reported doesn’t automatically mean you owe tax — someone decluttering their own things may be reported but owe nothing. But it does mean HMRC can see your selling activity, so it’s worth keeping records.
Keep simple records
Even as a side hustle, track:
- What you bought, when, and what you paid
- What it sold for and the fees charged
- Postage, packaging and other costs
A spreadsheet is fine. The resale value calculator can help you work out profit per item.
Marketplace business seller rules
Some marketplaces have their own rules about when you must register as a business seller — eBay, for example. Business seller accounts can have different fees, so check the marketplace’s guidance and compare in our fees guide.
