Selling on eBay, Vinted or Etsy: what platforms tell HMRC, and when you owe tax
Since January 2024, the platforms you sell on have been reporting their sellers to HMRC. That news caused a lot of worry about a "Vinted tax" that doesn't exist: the rules about what is taxable didn't change at all. What changed is how much HMRC can see.
So the questions to answer are whether you're trading or just clearing out, and whether your records can show the difference.
Selling personal possessions
Personal possessions are things that belong to you for your own use, whether you bought them or were given them: clothes, ornaments, kitchen equipment, furniture, jewellery, computers and phones. Selling them is generally not trading, and you probably don't have to pay Income Tax on the money, no matter how many items you sell.
The exception is Capital Gains Tax on something valuable. If you sell a single item for more than £6,000, you may need to pay it, and the same limit applies to the total value of things that form a set, such as matching ornaments or books by the same author.
When it becomes trading
You're probably trading if you sell goods that you:
- bought intending to sell for a profit, such as reselling stock or imported items; or
- made, including things you make for a hobby, such as upcycled furniture or crafts.
Add that income to any other trading income you have, such as services or online content. If the total is more than the £1,000 trading allowance for the tax year (6 April to 5 April), you need to tell HMRC. The allowance is measured on income, not profit.
What platforms report to HMRC
Digital platform operators collect sellers' details and income each calendar year and send them to HMRC by the following January. Information for 2025, for example, reaches HMRC by 31 January 2026. You'll get a copy of what they report about you.
You won't be reported for sales of goods if you make fewer than 30 sales and under €2,000 (about £1,700) in a calendar year. Services are different: a holiday let or other paid service booked through a platform is reported regardless of the amount.
Being reported doesn't automatically mean you owe tax. It means HMRC can compare what platforms say with what you declared, which is why your own records need to explain the numbers.
Records to keep if you're trading
- Sales: platform statements and payout reports.
- Costs: receipts for stock or materials, platform and payment fees, postage and packaging.
- Bank statements showing what came in and went out.
GOV.UK lists receipts for goods and stock, bank statements and sales invoices among the proof a self-employed person should keep. Records must be kept for at least 5 years after the 31 January submission deadline for the tax year. If receipts are missing, see claiming business expenses without receipts.
Sources
Common questions
Do I have to pay tax on things I sell on Vinted or eBay?
Not if you're selling your own personal possessions: you probably don't have to pay Income Tax on those, however many you sell. Capital Gains Tax may apply to a single item, or a set, sold for more than £6,000. If you buy things to resell or make things to sell, that's trading, and income over the £1,000 trading allowance has to be declared.
Will eBay or Vinted tell HMRC about me?
Since 1 January 2024 digital platforms report sellers' details and income to HMRC each January. You won't be reported for sales of goods if you make fewer than 30 sales in a calendar year and receive less than €2,000 (about £1,700) for them. Services, such as holiday lets, are reported regardless.
Does being reported mean I owe tax?
No. HMRC says a platform reporting your details doesn't automatically mean you owe tax. Whether you do depends on whether you were trading and how much you made.
What is the £1,000 trading allowance?
An allowance for small amounts of trading income. If your total income from trading, across all your activities and before expenses, is more than £1,000 in a tax year (6 April to 5 April), you need to tell HMRC about it.
Every figure on this page is checked against HMRC's own guidance and linked in the sources above. Last checked . Thresholds change each tax year, so if you are reading this well after that date, confirm the current figures before you rely on them. Terms.
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