Selling on Vinted, eBay or Etsy: do you pay tax?

If you are clearing out your own wardrobe or loft on Vinted or eBay, you usually pay no tax. If you buy things to resell, or make things to sell on Etsy, HMRC usually treats that as trading, and you must tell HMRC once your takings pass £1,000 in a tax year. A rare valuable item, such as a painting sold for more than £6,000, can also bring Capital Gains Tax.

Do you pay tax on selling your own things?

No, not usually. HMRC’s selling online guidance says selling items you owned for your own use usually does not create Income Tax.

HMRC was blunt when platform reporting began. Its press release of 4 December 2024 quoted Angela MacDonald, Deputy Chief Executive: “if you are not trading and just occasionally sell unwanted items online, there is no tax due.” Most second-hand clothes, books and gadgets sell for less than they cost, so there is no gain either.

When does selling online become trading?

Selling online becomes trading when you buy or make things in order to sell them at a profit. HMRC’s guidance says goods bought to resell, and items you make, including for a hobby, are usually trading.

HMRC also looks at the “badges of trade”, such as how often you sell, whether you improve items before selling and how quickly you sell after buying. Our side hustle tax guide lists all nine.

How much can you sell before telling HMRC?

You can take up to £1,000 a tax year from trading before you need to tell HMRC. The figure is gross takings, before fees, postage and stock costs, and it covers all your trading together.

• £1,000 or less: covered by the trading allowance, nothing to report.
• Over £1,000: register for Self Assessment by 5 October after the tax year and file a return.
• From 2027-28: both figures rise to £3,000, under HMRC’s tax information and impact note of 28 October 2026.

Once you are over the limit, you can deduct either your real costs or the flat £1,000 allowance. Real costs for resellers include stock, platform fees, postage and packaging. Keep receipts. See sole trader expenses.

When does Capital Gains Tax apply?

Capital Gains Tax can apply when you sell a personal possession for more than £6,000 and make a profit. GOV.UK’s personal possessions page gives jewellery, paintings, antiques, coins and stamps as examples. The £6,000 limit applies to a whole set, such as matching vases or chessmen, not to each piece.

Some items are exempt whatever their price:

• your private car, unless you used it for business
• anything with a limited lifespan, such as clocks

Between £6,000 and £15,000 a cap applies. HMRC’s Capital Gains Manual at CG76577 limits the taxable gain to five-thirds of the amount above £6,000. Its example: an antique mirror sold for £7,500 with a £4,000 gain has a taxable gain of only £2,500 (£1,500 times 5/3).

Your first £3,000 of gains each year is tax-free under the annual exempt amount. Our Capital Gains Tax calculator works out the rest.

What do Vinted, eBay and Etsy tell HMRC?

Platforms report sellers to HMRC each January for the previous calendar year. HMRC’s seller guidance says you are not reported if you make fewer than 30 sales of goods and receive less than €2,000, about £1,700.

If you are reported, the platform sends you a copy. The report is information, not a tax bill. If you were only selling your own things, nothing changes. Our guide to platform reporting explains what is shared.

What about VAT?

VAT only matters once a reselling business grows large. GOV.UK says you must register for VAT if taxable turnover in the last 12 months goes over £90,000, or you expect it to in the next 30 days.

From October 2027, online marketplaces will collect VAT on sales by UK sellers who are VAT-registered or sell over £90,000 a year on one platform. See online marketplaces and VAT.

Which applies to you?

• If you sold your own unwanted things, there is usually no tax and nothing to report.
• If you resell or make items and took over £1,000 in 2025-26, register now and file by 31 January 2027.
• If you sold a valuable item for over £6,000 at a profit, work out the gain; tax is due if your total gains for the year are over £3,000.
• If your reselling turnover is near £90,000 over 12 months, check whether you must register for VAT.

Frequently asked questions

Do I pay tax on Vinted sales?

Not if you are selling your own unwanted clothes. If you buy items to resell, that is trading, and takings over £1,000 a tax year must be reported.

Do I need to pay tax on eBay sales under £1,000?

No. Trading income of £1,000 or less in a tax year is covered by the trading allowance, so there is nothing to report.

Is Etsy income taxable?

Usually yes. HMRC treats items you make to sell as trading, so you must tell HMRC once your gross takings pass £1,000 a tax year.

Will HMRC know about my Vinted sales?

HMRC receives a report if you make 30 or more sales, or receive over €2,000, in a calendar year. That does not mean you owe tax.

Do I pay tax on selling an old designer handbag?

Only if it sells for more than £6,000 and you make a gain. Most second-hand handbags sell for less than they cost, so no tax is due.