Am I trading, or just selling my own things?

This is the single most important question for anyone worried about tax on their online selling, because the answer changes everything. Selling your own things is usually not taxable. Trading can be. Here is how to tell which one you are.

General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.

Why it matters so much

If you are selling your own used belongings, there is normally no income tax to pay, no matter how much eBay or Vinted reports to HMRC. If you are trading, you may need to register and report your income once you pass the allowances. So before you worry about numbers, work out which side of this line you are on.

Selling your own stuff: usually fine

Clearing out your wardrobe, selling an old phone, moving on unwanted gifts or getting rid of the kids' outgrown toys is selling personal possessions. It is not a business, and it is not taxable income. You could sell a fair amount this way and still owe nothing. The one thing to be aware of is that a single personal item worth more than £6,000, like a piece of jewellery or a painting, can bring in a different tax called Capital Gains Tax, but for everyday clothes and household items that does not apply.

Trading: buying or making to sell

You are trading if you are buying things to sell on for a profit, or making things to sell. Car boot finds you flip on eBay, wholesale stock, charity shop bargains resold at a markup, or handmade items you sell regularly all count. The intention is the giveaway: you got the item in order to sell it, not because you owned and used it.

The badges of trade

HMRC looks at a set of pointers, sometimes called the badges of trade, to decide whether someone is trading. You do not need to tick every box, it is about the overall picture. The main ones are:

• Why you got the item: did you buy it to sell, or did you own and use it first?
• How often you sell: regular, repeated sales look more like a business than an occasional clear-out.
• Whether you change or improve items to sell them for more.
• How you sell: buying in bulk, consistent listings and reinvesting your takings all point towards trading.
• How quickly you sell after buying: a fast turnaround suggests you bought to sell.

A few worked examples

Say you sell £2,000 of your own old clothes over a year. That is personal selling, not trading, so there is normally nothing to pay. Now say you spend £500 at car boots and resell the items for £2,000. That is trading, and because your sales are over £1,000 you would usually need to register and report it, although after costs your actual profit and tax might be small. Same amount of sales, completely different tax position, because of why you got the items.

If you do both

Plenty of people sell their own things and do a bit of flipping. That is fine. You only count the trading side against the £1,000 allowance. Your personal clear-out sales do not go into the calculation. It helps to keep the two roughly separate, in your head and in your records, so you know which sales are which.

What to do next

If you are only selling your own things, you can usually relax. If you are trading and your sales are over £1,000, register for Self Assessment by 5 October after the tax year, keep a record of what you bought and spent, and file by 31 January. This is general guidance rather than advice, so if your situation is not clear cut, check with HMRC or an accountant.

Frequently asked questions

This guide is general information, not tax advice, and reflects the UK rules for the current tax year. Always check with a qualified accountant before you file. FlipTally is independent and not affiliated with, endorsed by or connected to eBay, Vinted, Depop or HMRC. Last updated 2026-08-03.