Selling your own unwanted clothes and belongings on eBay, Vinted or similar sites is usually not taxable, however many items you sell, as long as each one sells for less than £6,000. Tax becomes due if you are trading, for example buying items to resell at a profit or making things to sell, and your trading income for the tax year is over the £1,000 trading allowance. Platforms report sellers with 30 or more sales or about £1,700 of sales in a calendar year to HMRC, but a report does not on its own mean you owe tax.
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Do I pay tax on selling my own things online?
Usually not. HMRC’s guidance on online platforms says that if you are selling personal possessions you probably do not have to pay Income Tax on them. Its examples say that selling unwanted items worth under £6,000 each is unlikely to need reporting or tax, no matter how many items you sell. HMRC’s side hustle campaign puts it the same way: if you are just selling unwanted personal belongings from time to time, you do not usually need to tell HMRC.
The position changes when the reason you own the goods is to sell them, which is where the trading rules below come in.
When does selling on eBay or Vinted count as trading?
HMRC says you are probably trading if you sell goods that you bought to resell at a profit, or that you made, including items made as a hobby. Its guidance on working for yourself also lists making items to sell for profit and selling items on a regular basis, online, at car boot sales or through classified adverts, as signs of trading.
HMRC’s side hustle examples include someone who regularly buys from car boot sales or charity shops to resell, who needs to tell HMRC, and someone who sold handmade greeting cards for more than £1,000, who also needs to tell HMRC. Income from different platforms is added together: in one HMRC example, £600 on one site and £900 on another came to more than £1,000 before expenses, so the seller had to report it.
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What are the badges of trade?
Where it is unclear, HMRC’s Business Income Manual lists nine badges of trade:
- a profit seeking motive
- the number of transactions
- the nature of the asset
- existence of similar trading transactions or interests
- changes made to the asset to make it easier or more profitable to sell
- the way the sale was carried out
- the source of finance
- the interval of time between purchase and sale
- the method of acquisition
The manual says the presence or absence of one badge is unlikely by itself to give a conclusive answer, so the overall picture decides. Items you inherited or were given are less likely to be traded. Our guide to the badges of trade applies each test.
What do eBay and Vinted report to HMRC?
Digital platform reporting rules started on 1 January 2024. Platforms report sellers’ details and income from sales on their site to HMRC, and information for 2024 was reported by 31 January 2025. Your details are not reported if you make fewer than 30 sales of goods in a calendar year and receive less than 2,000 euros, about £1,700, for those sales. HMRC’s press release of 4 December 2024 described it as sellers who sold at least 30 items or earned roughly £1,700 being contacted by the platform.
| Rule | Figure | Period |
|---|---|---|
| Platform reports you to HMRC | 30 or more sales, or about £1,700 (2,000 euros) or more | Calendar year, from 1 January 2024 |
| Trading allowance | £1,000 of trading income before expenses | Tax year, 6 April to 5 April |
| Announced trading allowance | £3,000 | From 6 April 2027 |
| Capital Gains Tax on a possession | Item or set sold for £6,000 or more | Any sale |
| Capital Gains Tax allowance | £3,000 | 2026 to 2027 |
| Capital Gains Tax rates | 18% or 24% | Gains from 6 April 2026 |
HMRC has said there are no new taxes for people selling unwanted items online, and that a report does not automatically mean you owe tax. Platforms work in calendar years and tax years run from 6 April, so you may need to convert figures. Our page on digital platform reporting explains what is shared.
How does the trading allowance apply to resellers?
If you are trading, the first £1,000 of trading income each tax year is covered by the trading allowance, and income from all your side activities counts towards that single £1,000. The test is income before expenses. If you are over £1,000, you choose either to deduct the £1,000 allowance or to deduct your actual costs, such as the price you paid for stock, postage and platform fees, but not both. See our page on the trading allowance.
Once your trading income is over £1,000, you must register for Self Assessment by 5 October after the end of the tax year. Our guide to registering for Self Assessment covers how. Budget 2026, published on 28 October 2026, said the trading allowance and the Self Assessment trading income reporting threshold will rise to £3,000 from 6 April 2027.
When could Capital Gains Tax apply?
Selling a valuable personal possession is not trading, but it can bring Capital Gains Tax. gov.uk says you may pay it on a possession sold for £6,000 or more, and the £6,000 limit applies to a set of items, such as matching vases or chessmen, taken together. Cars are exempt unless used for business, as are possessions with a limited lifespan. See our page on chattels and wasting assets.
For the 2026 to 2027 tax year the tax free allowance is £3,000. Gains above it are taxed at 18% where they fall within the basic rate band and 24% above it, for gains made from 6 April 2026. Our page on the annual exempt amount explains how the allowance is set against gains.
How does this work for a typical seller?
Illustration only. Sam clears out her wardrobe in 2026 and sells 45 items on Vinted for £900 in total. Separately, she buys trainers in sales and resells them on eBay, taking £2,600 in the 2026 to 2027 tax year after paying £1,500 for the stock and postage.
- Vinted: 45 sales is 30 or more, so Vinted reports her, but these are her own used clothes, so no tax is due.
- eBay: buying to resell at a profit points to trading, and £2,600 is over £1,000.
- Using actual costs her profit is £1,100; using the allowance it would be £1,600. She claims actual costs.
She registers for Self Assessment by 5 October 2027 and reports £1,100 of trading profit.
Frequently asked questions
Will I be reported if I sell 31 cheap items?
Yes. The exception only covers sellers with fewer than 30 sales and less than 2,000 euros, so 31 sales are reported even if they total very little. Whether tax is due still depends on whether you are trading.
Is selling things I inherited trading?
Usually not. HMRC’s manual says assets acquired by inheritance or as a gift are less likely to be the subject of trading, though a valuable item could still bring Capital Gains Tax.
What records should resellers keep?
Keep records of sales, purchases and costs for at least 5 years after the 31 January filing deadline for the year. HMRC can open a check into a return, and the accountant’s fees for dealing with it can be covered by tax investigation insurance.
Where can I read about other side income?
Our guide to side hustle tax covers services, content and National Insurance.
If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.
Related cover: Public liability insurance for sole traders. Ask for a quote or call 01795 841 310.
Sources
- GOV.UK: Check if you need to tell hmrc about your income from online platforms
- taxhelpforhustles.campaign.gov.uk: Buying or making things to sell and online selling tax rules
- GOV.UK: Working for yourself
- GOV.UK: manual page BIM20205
- GOV.UK: Selling goods or services on a digital platform
- GOV.UK: No tax changes for online sellers
- GOV.UK: Tax free allowances on property and trading income
- GOV.UK: Budget 2026 overview of tax legislation and rates ootlar
- GOV.UK: Capital gains tax personal possessions
- GOV.UK: Rates
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.