UK reseller tax rules, explained
Reselling tax can feel like a maze of numbers: £1,000, £12,570, £1,700, 30 sales, 5 October, 31 January. This guide pulls all the rules together in one place, in plain English, so you can see how they fit. The detailed guides below go deeper on each.
General information, not tax advice. Check with HMRC or a qualified accountant before you act on it.
The £1,000 trading allowance
You can earn up to £1,000 a year from trading (selling for profit) without reporting or paying tax. It is measured on your sales, before costs, not your profit. Over it, you deduct either the flat £1,000 or your real costs.
The £12,570 personal allowance
On top of the trading allowance, everyone can earn £12,570 in total income in the 2026/27 tax year before any income tax. If your reselling profit plus other income stays under that, there is often no income tax at all.
Income tax rates above the allowance
Over £12,570, income tax is 20 percent up to £50,270 and 40 percent above, for England, Wales and Northern Ireland. Scotland has its own bands. Your reselling profit stacks on top of any other income.
Class 4 National Insurance
Self-employed profits can also attract Class 4 National Insurance once profit passes £12,570. It is a small slice on top of income tax, and it is only on your trading profit, not your salary.
The 30 sales or £1,700 reporting rule
Separate from tax, platforms report you to HMRC once you pass roughly 30 sales or £1,700 in a calendar year. This is just data sharing, and it is a different number from the £1,000 tax allowance.
The two dates, and the deadlines
The tax year runs 6 April to 5 April (what HMRC taxes). The calendar year runs 1 January to 31 December (when platforms report). If you need to report, register by 5 October after the tax year, and file and pay by 31 January. Missing the filing deadline is an automatic £100 penalty.
Frequently asked questions
What is the difference between the £1,000 and £12,570 allowances?
The £1,000 trading allowance is the point where trading income may become taxable. The £12,570 personal allowance is how much total income you can have before any income tax. They stack.
What tax rate will I pay on reselling?
For England, Wales and NI, 20 percent between £12,570 and £50,270, and 40 percent above, plus some Class 4 National Insurance. Scotland has its own bands. Your profit stacks on other income.
Is the reporting threshold the same as the tax allowance?
No. The reporting threshold is about 30 sales or £1,700, and it only decides whether the platform tells HMRC. The £1,000 allowance is the tax line.
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
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.