Tax on selling online: Vinted, eBay and Etsy rules explained (2026)
Do you pay tax selling on Vinted, eBay or Etsy? How HMRC's platform reporting rules work, when selling becomes trading, the £1,000 allowance (£3,000 from April 2027) and what to do if you are reported.
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The rules HMRC uses for online sellers
Since 1 January 2024, UK digital platforms like Vinted, eBay, Etsy and Depop have had to collect information about their sellers and send it to HMRC each January. The first reports went to HMRC by 31 January 2025.
A platform reports you if you make 30 or more sales, or receive about £1,700 (€2,000) or more, in a calendar year. The report includes your name, address, date of birth, National Insurance number or tax reference, and how much you were paid, minus the platform's fees.
GOV.UK is clear that a report does not automatically mean you owe tax. It simply gives HMRC the information to check.
Clearing out vs trading
What matters is not the platform or how much you sell, but why you are selling.
| You are... | Taxable? |
|---|---|
| Selling your own clothes, toys and household items you no longer want | No |
| Selling an unwanted gift or something you bought for yourself | No |
| Buying items to sell on for a profit, including charity shop finds | Yes, this is trading |
| Making things to sell, like crafts, prints or jewellery | Yes, this is trading |
| Selling regularly in a planned, organised way | Likely to be trading |
HMRC looks at signs, sometimes called the "badges of trade": whether you bought with the plan to resell, how often you sell, whether you improve or repair items before selling, and whether it looks like a business.
What about valuable personal items?
Selling your own possessions is not income, but a few high-value items can bring in Capital Gains Tax. Personal possessions sold for £6,000 or less each are usually exempt, and most second-hand goods sell for less than you paid anyway.
If you are trading: how the tax works
- Under £1,000 a year: your trading income is covered by the trading allowance. Nothing to pay or report. This rises to £3,000 from 6 April 2027.
- Over the allowance: register for Self Assessment and pay tax on your profit. You can deduct either the trading allowance or your actual costs, such as stock, postage and selling fees, whichever is higher.
- Profit is added to your other income and taxed at your normal rate, usually 20% or 40%.
What to do if you have been reported
- You only sell your own unwanted things: you do not need to do anything. If HMRC writes to you, reply explaining that you were selling personal items.
- You trade, but under £1,000: you are covered by the trading allowance. Keep records in case HMRC asks.
- You trade over £1,000 and have not told HMRC: register for Self Assessment now. Coming forward yourself usually means lower penalties than waiting to be contacted.
Keep simple records
Even if you think you are not trading, a simple spreadsheet protects you:
- What you sold, when and for how much
- What you paid for it, if you bought it to resell
- Fees and postage
Common questions
Does Vinted report you to HMRC?
Yes, if you make 30 or more sales or receive about £1,700 or more in a calendar year. Vinted, eBay, Etsy and other platforms all have to follow the same rules.
Do I pay tax on selling my old clothes on Vinted?
No. Selling your own unwanted clothes is not trading, so there is no income tax, even if you are reported.
What is the 30 item rule?
It is the point at which platforms report your sales to HMRC: 30 sales, or about £1,700, in a calendar year. It is a reporting threshold, not a tax threshold.
How does HMRC know if I am trading?
Platform reports give HMRC your sales totals. HMRC can then ask questions, and looks at whether you bought items to resell, made items to sell, or sell in a regular, organised way.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.