You are generally exempt from paying income tax if you are selling used clothing that you do not require on eBay or Vinted.
Whereas buying and then reselling clothes for profit can constitute trading. Generally, it becomes obligatory to inform HMRC if your aggregate gross trading income is above £1,000 per year.
A platform reporting your sales does not automatically mean you owe tax. These are two separate checks.
Are you clearing out personal items or trading?
Start with why you sell the items.
Selling clothes that you buy for yourself, furniture from your home or unwanted gifts are normally personal possessions. Buying any item that you want to resell to generate income is considered trading.
| What you are selling | Likely position |
| Your children’s outgrown clothes | Sale of personal belongings |
| A sofa you used at home | Sale of personal belongings |
| Clothes bought from charity shops to resell | Trading |
| Jewellery you make to sell | Trading |
| Furniture bought to restore and sell for profit | Trading |
The HMRC looks at the activity. Saying that your account is private or that your activity is a hobby is not enough to determine your tax situation. Even if you create something as a hobby, it can still be trading when you sell the product.
For instance, selling 40 garments from your closet will not necessarily make you a trader. Buying 40 jackets to sell them is another thing.
You may also do both. Keep personal clear-out sales separate from goods bought for resale. This makes your figures easier to explain.
Do eBay and Vinted report sales to HMRC?
Yes. Digital platforms have reporting duties that can apply to private sellers as well as businesses.
For goods sales, the main reporting triggers are:
- 30 or more sales through a platform in a calendar year.
- More than €2,000 received from sales through that platform during the calendar year.
The sterling equivalent of €2,000 can vary. Check the amount shown in your platform’s reporting guidance.
Both Vinted and eBay have stated that when a reporting threshold is reached, there will be sharing of seller information to HMRC.
Your name, address, date of birth and National Insurance Number will be requested from you by the platform. They must also provide a copy of the information reported.
That report is not a tax bill. It does not replace your own records or tax return.
Selling fewer than 30 items does not make trading income tax-free
Suppose you buy ten items to resell and receive £1,500 from those sales. You may need to report the trading income even if the platform does not report your account.
By contrast, a wardrobe clear-out could trigger platform reporting without creating taxable trading income.
The number of sales tells you about one reporting threshold. It does not tell you whether you are running a trade.
How the £1,000 trading allowance works
The trading allowance is meant to cover up to £1,000 per year of allowable gross trading income. The gross income is your income before any expenses have been deducted. It is not the profit left after buying stock and paying selling costs.
Where the eligible gross trading income is £1,000 or less, there would generally be no requirement to disclose it based on this reason alone. However, some special circumstances exist, such as instances when the allowance cannot be used.
Above £1,000, you normally need to register for self-assessment and declare the income. Registration does not necessarily mean tax will be payable.
You get one allowance across your trading activities
You do not receive a separate £1,000 allowance for eBay, Vinted, Etsy and every other marketplace.
Suppose you receive:
- £650 from goods bought to resell on eBay.
- £500 from goods bought to resell on Vinted.
Your combined trading income is £1,150. It exceeds the allowance even though neither account has received £1,000.
Other qualifying side income, such as paid gardening or freelance work, also counts towards the same allowance. Your employment salary does not form part of this trading-income total.
Has the allowance increased to £3,000?
No. As of October 2026, the trading allowance remains £1,000.
The government has announced a simpler reporting route for certain income between £1,000 and £3,000. HMRC says this is expected by 2029.
That planned reporting change does not create a £3,000 tax-free allowance. The current reporting rules still apply.
How much tax would an online seller pay?
For a sole trader, income tax is generally calculated on taxable profit. Your total sales are the starting point.
You can usually deduct allowable business expenses or claim the trading allowance instead. You cannot deduct both against the same trading income.
Relevant selling expenses may include:
- Stock bought for resale.
- Materials used to make products.
- Selling and payment-processing fees you pay.
- Packaging and postage you pay for business orders.
- Advertising costs.
Only claim costs that relate to the business. Personal purchases do not become deductible because you also sell online.
An example of tax on eBay sales
Suppose you buy second-hand goods to resell. During the tax year, your figures are:
| Item | Amount |
| Sales income | £4,200 |
| Allowable stock costs | £2,100 |
| Allowable fees, packaging and postage | £400 |
| Taxable profit using actual expenses | £1,700 |
Using the £1,000 trading allowance instead would leave £3,200 in taxable profit. In this example, claiming actual expenses produces the lower figure.
The profit of £1,700 will be considered alongside your other taxable income.
For the 2026/27 year, the Personal Allowance is £12,570. And if you work, your salary will likely already make use of this personal allowance.
Assuming you are an British citizen earning a salary of £30,000 with no other income sources, the profit of £1,700 falls within the 20% basic-rate band, generating £340 in additional income tax.
Scottish Income Tax bands differ. Your own bill will depend on your full circumstances.
The Class 4 National Insurance is applicable to cases where the combined profits from self-employment exceed £12,570 in the tax year 2026/27. It would not arise on the £1,700 profit in this example if that is your only self-employed income.
What about valuable personal belongings?
A capital gains tax can be charged on the sale of your personal belongings regardless of the fact that you’re not trading.
Where the sale price of your personal assets exceeds £6,000, it would be wise for you to consider the rules. For instance, pieces of jewellery, artworks, antiques, and certain collections might need some extra considerations.
The £6,000 figure concerns an individual possession. Special rules also apply to items forming a set.
There isn’t an automatic tax deduction made from the entire selling price. You have to see whether you have a taxable gain, and then you can think about exemptions.
For instance, selling a painting for £8,000 does not necessarily mean that you have to pay tax on £8,000. What you originally paid and any allowable selling costs matter.
Ordinary used clothes sold for less than their original cost are unlikely to create this issue.
When should sellers register and file a tax return?
If you need to report trading income, ensure that you are registered for self-assessment before the deadline applicable to you. If you are already registered, then report the trading income.
The normal dates are:
| Tax year | Income period | Notify HMRC where required | Online return and tax payment |
| 2025/26 | 6 April 2025 to 5 April 2026 | 5 October 2026 | 31 January 2027 |
| 2026/27 | 6 April 2026 to 5 April 2027 | 5 October 2027 | 31 January 2028 |
These are the standard deadlines. Do as HMRC advises in any particular filing notice.
If you were supposed to register in 2025/26 but did not do so on 5 October 2026, please act immediately. The extended deadline offered by HMRC for making your filing does not mean that your tax payment deadline is extended.
Platform reports cover a different year
Platform reporting normally covers 1 January to 31 December. The UK tax year runs from 6 April to 5 April.
A platform’s annual total therefore may not match the amount needed for your tax return. Use dated transactions to calculate the correct tax-year figures.
What records should you keep?
Download your sales history regularly. For trading activity, keep:
- Sale dates and amounts received.
- Refund and cancellation details.
- Stock purchase receipts.
- Platform fee statements.
- Postage and packaging receipts.
- Bank statements and payout records.
Make sure that you can see how any charges or refunds are reflected in the statement. If there are any charges deducted from the bank payment, then the payment may not be equal to your sales revenue.
As for the personal items, the available receipts or purchase confirmations can help show what items you have sold. You might write a brief note on the difference between the personal items and the stock for sale.
The records for self-employment usually should be retained for at least five years after the deadline for the 31 January tax return.
If you receive something from HMRC, understand its contents and reply before the deadline set. Compare its figures with your records before assuming that every reported sale is taxable.
In case of doubt as to whether your sales qualify as trade, arrange for an appointment with RMA Accountants LTD. We can analyse your sales, expenses and reporting requirements.
