Do you pay tax on eBay sales in the UK?

If you have had a message saying eBay has shared your details with HMRC, or you have just started making a bit of money selling online, it is natural to worry you are suddenly in trouble. The good news is that being reported is not the same as owing tax, and plenty of people who sell on eBay owe nothing at all. Here is how it actually works, in normal English.

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

Being reported to HMRC is not the same as owing tax

Since 2024, platforms like eBay, Vinted and Depop have to pass seller details to HMRC once you go over a certain number of sales or amount of income in a calendar year. That can feel alarming, but it is just data sharing. Whether you actually owe anything is a separate question, and it comes down to what you are selling and how much profit you make.

Are you 'trading', or just selling your own things?

This is the first thing to work out, because it changes everything. If you are clearing out your own wardrobe, old phones or unwanted gifts, that is normally not taxable. You are selling personal belongings, not running a business. If you are buying things to sell on for a profit, like car boot finds, wholesale stock or charity shop flips, that counts as trading, and trading can be taxable.

If you are not sure which one you are, it is safer to assume you are trading and check the numbers below.

The £1,000 trading allowance

Every UK taxpayer gets a £1,000 trading allowance. If your total sales from trading in a tax year come to less than £1,000, you normally have nothing to report and nothing to pay. Note that this is your total sales before fees and postage come off, not your profit.

Go over £1,000 in sales and you will usually need to register for Self Assessment and report the income, even if your actual profit turns out to be small.

Over £1,000? You might still owe nothing

Having to register is not the same as having a bill. Once you are over the allowance, you can take off either the flat £1,000 allowance or your real costs, whichever leaves you with less taxable profit. Real costs include selling fees, postage, packaging and what you paid for the stock.

On top of that you have your personal allowance, which is £12,570 for the 2026/27 tax year. If your reselling profit plus any other income stays under that, there is often no income tax to pay, though you may owe some Class 4 National Insurance once profits pass its threshold.

The two dates people mix up

There are two different timelines, and mixing them up causes most of the worry. The tax year runs 6 April to 5 April, and that is the period HMRC taxes you on. The calendar year runs 1 January to 31 December, and that is what the platforms use to decide whether to report you. They do not line up, so it helps to keep them separate in your head.

What to do next

If your trading sales are under £1,000, you can usually relax. If you are over, register for Self Assessment (the deadline to register is 5 October after the tax year ends), keep a record of your costs through the year, and file by 31 January. Miss that date and there is an automatic £100 penalty, so it pays to sort it early rather than in a panic.

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.