Do I pay tax selling on Etsy, eBay or Vinted? (UK)
Do I pay tax selling on Etsy, eBay or Vinted?
Usually not if you are selling your own used things: HMRC says you probably do not pay Income Tax on personal possessions. If you make things to sell or buy to resell, that is trading: over £1,000 of gross trading income in the tax year (2026-27), you register for Self Assessment by 5 October after it. Being reported by a platform is not the same as owing tax.
Platforms now send HMRC details of sellers with 30 or more sales, or more than about £1,700, in a calendar year. That is a reporting line, not a tax line, and the 2026 reports reach HMRC, with a copy to you, by 31 January 2027.
Answer the questions for one tax year. The checker shows whether your selling looks like trading, whether you are over the trading allowance, and what the platform report means.
Built by Muhammad Shahzeb Anwar, MSc Industrial and Organizational Psychology. Rules from GOV.UK and HMRC's Business Income Manual, including the trading allowance change announced on 28 October 2026.
Check your selling
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Your own things vs trading
Personal possessions are things that belong to you for your own use, including things you bought or were given. HMRC's guidance says that if you are selling these you probably do not have to pay Income Tax on them, even if you sell a lot of them, for example when clearing out a loft or children's clothes.
Trading is different: making things to sell (even as a hobby), buying things to sell at a profit, or selling services. Where it is not clear, HMRC weighs the badges of trade: a profit-seeking motive, the number of transactions, the nature of the item, similar trading, changes made to the item, the way it was sold, how it was paid for, the time between buying and selling, and how you got it. No single badge decides it.
The trading allowance: £1,000, then £3,000
For 2025-26 and 2026-27 the trading allowance is £1,000 of gross trading income in the tax year, from all your trades added together. If your gross trading income is £1,000 or less, HMRC says you may not need to tell it. Over £1,000, you register for Self Assessment by 5 October after the tax year, and you can deduct the £1,000 instead of your actual costs.
On 28 October 2026 GOV.UK published a measure to raise the allowance, and the Self Assessment reporting line for trading income, to £3,000 from 6 April 2027, legislated in the Finance Bill 2026-27. The £3,000 idea had been talked about since 2024; it now has a start date, but it is not law yet and it does not change 2026-27.
Worked example. Sam makes candles. In 2026-27 the candle sales come to £838 including postage the buyers paid, with £304 of costs. That is under £1,000, so the allowance covers it. Sam also sold an old games console and children's clothes on eBay and Vinted: personal possessions, not trading.
What the platform report means
Since 1 January 2024 platforms such as Etsy, eBay and Vinted collect seller details and report each calendar year to HMRC by 31 January, giving the seller a copy. A platform does not have to report a seller who made fewer than 30 sales of goods and received €2,000 or less (HMRC says about £1,700) on it in the year. Each platform counts separately, and sellers of services are reported whatever the amount.
HMRC's press release of 4 December 2024 said there are no new tax obligations for people selling unwanted items online. The report runs January to December, while the allowance runs 6 April to 5 April, so sales from 1 January to 5 April belong to the previous tax year.
Capital Gains Tax on personal items
HMRC says you may need to pay Capital Gains Tax if you sell a personal possession, or a set of things such as matching chessmen, for £6,000 or more. Your car is exempt, and so are things with a limited life, such as most watches and clocks, unless you used them in a business. Whether any tax is due depends on what you paid and your annual tax-free allowance.
Common mistakes
Testing profit against the £1,000 allowance (it is gross income); using the platform's calendar-year total for the tax year; counting only one platform when you trade on several; forgetting other side income that is trading too; and assuming a report from Vinted or eBay means tax is due.
What this will not tell you
This applies HMRC's published guidance to your answers. It is not a ruling: only HMRC decides whether you are trading. It does not work out Capital Gains Tax, VAT, or tax on profits, and it does not cover partnerships, companies or property income. Nothing you type leaves your browser.
Questions people actually ask
Do I have to pay tax on things I sell on Vinted?
Not usually, if they are your own used things. HMRC says you probably do not pay Income Tax on personal possessions. Selling things you made or bought to resell is trading.
Will HMRC know if I sell on eBay?
eBay and other platforms report sellers with 30 or more sales, or more than about £1,700, in a calendar year. Being reported does not mean you owe tax.
Is the £1,000 trading allowance based on profit or sales?
Sales. It is gross trading income before any costs, and all your trades are added together.
Is the trading allowance going up to £3,000?
GOV.UK announced on 28 October 2026 that it rises to £3,000 from 6 April 2027, in the Finance Bill 2026-27. For the 2026-27 tax year it is still £1,000.
When do I register for Self Assessment if I sell online?
By 5 October after the end of the tax year in which your gross trading income went over the allowance. For 2026-27 that is 5 October 2027, with the return due by 31 January 2028.
Do I pay tax selling a watch or jewellery for over £6,000?
Capital Gains Tax may apply to a personal possession sold for £6,000 or more. Things with a limited life, such as most watches, are usually exempt.
What are the badges of trade?
The signs HMRC uses to decide whether selling is trading: profit motive, number of sales, the item, similar trading, changes to the item, how it was sold, finance, time held and how you got it.
Sources
Checked against the text of the law on 2 November 2026. Laws and notified rates change; if a source below has moved on, the source wins over this page.
- GOV.UK: Check if you need to tell HMRC about your income from online platforms: https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms
- GOV.UK: Tax-free allowances on property and trading income: https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
- GOV.UK: Increasing the trading allowance (28 October 2026): https://www.gov.uk/government/publications/income-tax-increasing-the-trading-allowance/increasing-the-trading-allowance
- GOV.UK: Reporting rules for digital platforms: https://www.gov.uk/guidance/reporting-rules-for-digital-platforms
- GOV.UK: No tax changes for online sellers (press release): https://www.gov.uk/government/news/no-tax-changes-for-online-sellers
- HMRC Business Income Manual BIM20205: badges of trade: https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205
- GOV.UK: Capital Gains Tax on personal possessions: https://www.gov.uk/capital-gains-tax-personal-possessions
- GOV.UK: Register for Self Assessment: https://www.gov.uk/register-for-self-assessment
Cite this tool
Free to use and free to quote. If a figure here is useful in something you are writing, a link back is all that is asked.
Muhammad Shahzeb Anwar, MSc Industrial and Organizational Psychology. Online Selling Tax Checker (UK). Shahzeb Speaks. https://www.shahzebspeaks.com/do-i-pay-tax-selling-on-etsy-ebay-vinted/
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Selling on more than one site? Log it once
The Online Seller Tax Checker kit adds a sales log for every platform, splits each platform's January-to-December report into UK tax years, shows which platforms are likely to report you, and runs the same checks from your real sales. Excel and Google Sheets workbook, an offline web version and a short guide. An estimate and a checker, not tax advice.