Do you pay tax on selling online in the UK?
If you make a bit of money selling online, whether on eBay, Vinted, Facebook Marketplace or Etsy, it is natural to wonder if you owe tax. The reassuring truth is that a lot of people owe nothing. This is the complete overview, and it links to detailed guides for each part.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
The question that decides everything: are you trading?
Whether you owe tax comes down to one thing first: are you trading, or just selling your own belongings? Clearing out your own wardrobe, old furniture or unwanted gifts is not taxable, however much it adds up to. Buying or making things to sell for a profit is trading, and trading can be taxable. Get this right and the rest follows.
The £1,000 trading allowance
If you are trading, you get a £1,000 trading allowance. Under £1,000 of trading sales in a tax year (measured on your sales, not your profit) and you normally have nothing to report or pay. It is one allowance across every platform combined, not £1,000 each.
Over £1,000? You might still owe nothing
Going over the allowance means you usually register for Self Assessment, but it does not mean a bill. You deduct either the flat £1,000 or your real costs, and you have your £12,570 personal allowance on top. Many sellers register, report, and still owe nothing.
Being reported to HMRC is not a tax bill
Platforms now share seller data with HMRC once you pass roughly 30 sales or £1,700 in a calendar year. That is data sharing, not a demand for money. Whether you owe is a separate question about trading and profit.
It works the same across platforms
eBay, Vinted, Depop, Etsy and Facebook Marketplace all follow the same tax logic. What changes is the mix of personal versus trading selling on each. Vinted is mostly people clearing wardrobes, Etsy is mostly makers, but the rules underneath are identical.
Where you live matters a little
These rules are for the UK, which is England, Wales, Scotland and Northern Ireland. Scotland has slightly different income tax bands, but the allowances and the trading rules are the same. The Republic of Ireland is a separate country with its own system.
Frequently asked questions
Do I have to pay tax on selling online?
Only if you are trading (buying or making to sell) and your profit is above the allowances. Selling your own belongings is not taxable, and many traders owe nothing after the £1,000 and £12,570 allowances.
Does it matter which platform I sell on?
The tax rules are the same across eBay, Vinted, Depop, Etsy and Facebook Marketplace. What differs is how much of your selling is personal versus trading.
Does being reported to HMRC mean I owe tax?
No. Reporting is just data sharing once you pass about 30 sales or £1,700 a year. Whether you owe depends on trading and profit.
See where you actually stand
Get a rough answer in about a minute with the free calculator, or connect your eBay account to see your real profit and tax.
The guides in this series
- Do you pay tax on eBay sales in the UK? →
- Do you pay tax on Vinted in the UK? →
- Am I trading, or just selling my own things? →
- Do you pay tax on Facebook Marketplace sales in the UK? →
- When does a hobby become a business? (UK tax) →
- Do you pay tax on Etsy sales in the UK? →
- Do students pay tax on a reselling side hustle? →
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 2026-08-04.