Record keeping for resellers: what to track for tax
Good records are the difference between a stressful January and a calm one, and between overpaying tax and paying exactly what you owe. The good news is you do not need anything fancy. Here is what to keep and how.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
Why records matter
If you are trading and over the £1,000 allowance, you report your profit, which is your sales minus your costs. Every cost you can show lowers your taxable profit. So good records mean you claim everything you are allowed and pay no more tax than you need to. They also make the return itself far quicker to fill in.
What to keep
For each tax year, keep a record of:
- Your total sales, including any postage buyers paid you.
- Your selling and platform fees.
- Postage you paid, and packaging costs.
- What you paid for the stock you sold, with receipts or notes.
- Any refunds you gave or losses on disputes.
- Any other genuine business costs, like mileage to source stock.
A spreadsheet is enough
You do not need accounting software. A simple spreadsheet with a row per sale, or even monthly totals for each type of cost, is plenty for most resellers. The important thing is that it is complete and honest, not that it is fancy.
How long to keep records
As a self-employed person, you should keep your records for at least five years after the 31 January filing deadline they relate to. HMRC can ask to see them, so do not throw them away the moment you have filed.
Keep it up as you go
The biggest mistake is leaving it all to January. A few minutes each week, or a quick monthly tidy-up, is far easier than digging through a year of orders in a panic. Save receipts as you get them and note stock costs when you buy.
Frequently asked questions
What records do I need to keep for reselling tax?
Your sales, selling fees, postage, packaging, what you paid for stock, and any refunds. Notes and receipts for costs are what let you lower your taxable profit.
Do I need accounting software?
No. A simple spreadsheet, or even monthly totals for each type of cost, is enough for most resellers. It just needs to be complete and honest.
How long should I keep my records?
At least five years after the 31 January deadline they relate to, because HMRC can ask to see them.
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 2026-08-04.