How much tax will I pay on my reselling?
If your reselling has become a real side income, the natural question is: how much of it will I actually lose to tax? The honest answer is often less than people fear, and sometimes nothing. Here is how the sums work, with a couple of plain examples.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
First, only your profit is taxed
You are never taxed on your total sales, only on your profit. Profit is what is left after your allowable costs: selling fees, postage, packaging and what you paid for the stock. So the first job is always to work out your real profit, not your turnover.
The £1,000 trading allowance comes off first
Every UK taxpayer can earn £1,000 from trading before any of it is taxable. If your sales are under £1,000, there is normally nothing to pay and nothing to report. If you are over, you deduct either the flat £1,000 or your real costs, whichever leaves less profit to be taxed.
Then your £12,570 personal allowance
On top of the trading allowance, you have your personal allowance, which is £12,570 for the 2026/27 tax year. This covers all your income together. If your reselling profit plus any other income, like a job salary, stays under £12,570, there is usually no income tax to pay at all.
Income tax rates, if you go over
Once your total income passes £12,570, income tax kicks in. For the 2026/27 tax year in England, Wales and Northern Ireland, it is 20 percent on income between £12,570 and £50,270 (the basic rate), and 40 percent above that (the higher rate). Scotland has its own bands. Your reselling profit stacks on top of any other income, so it is taxed at whatever rate you have already reached.
Class 4 National Insurance
As well as income tax, self-employed profits can attract Class 4 National Insurance once your profit passes the £12,570 threshold. It is a smaller slice on top of income tax. For most part-time resellers under the personal allowance it does not apply, but it is worth knowing about as your profits grow.
Two quick examples
Example one: you make £800 of trading sales in the year. That is under £1,000, so there is normally nothing to report and nothing to pay. Example two: you have a £30,000 job and make £4,000 profit from reselling. Your salary already uses up your personal allowance, so the £4,000 profit is taxed at the basic 20 percent rate, which is £800 to set aside. Your own numbers will differ, but that is the shape of it.
The safe amount to set aside
A simple rule many part-time sellers use is to put aside around 20 percent of their profit as they go, so January is not a shock. If your profit stays under your allowances you may get it back, but setting a little aside is a good habit. FlipTally estimates your set-aside figure from your real numbers. This is general information, not advice, so check anything important with HMRC or an accountant.
Frequently asked questions
Do I pay tax on my sales or my profit?
Your profit. You take your costs, like fees, postage and stock, off your sales first. Only the profit above your allowances is taxed.
How much should I set aside for tax?
A rough rule is about 20 percent of your profit, though if you stay under your £1,000 and £12,570 allowances you may owe nothing. Setting a little aside as you go avoids a January shock.
Does my day job affect the tax on my reselling?
Yes. Your reselling profit stacks on top of your job income, so it is taxed at whatever rate you have already reached, often 20 percent once your salary uses your personal allowance.
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.
Related guides
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.