2024/25 tax year · Submits directly to HMRC

Online Selling Tax UK: Do You Need to Pay Tax on Sales?

Last updated March 2025

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Millions of people sell things online in the UK — through eBay, Etsy, Vinted, Depop, Amazon, and Facebook Marketplace. Whether any of that income is taxable depends on two things: what you're selling and how much you're making.

When Is Online Selling Taxable?

Not all online selling is taxable. HMRC makes a distinction between two types of activity:

  • Selling personal possessions — clearing out clothes, furniture, electronics you already own. This is not trading income and is generally not taxable.
  • Trading — buying goods with the intention of reselling them at a profit, or making and selling goods regularly. This is taxable once it exceeds the £1,000 trading allowance.
Trading Allowance 2024/25
£1,000
Under £1,000 combined: No registration, no tax return needed
!
Over £1,000 combined: Register for Self Assessment and file a return

The allowance is per person across ALL platforms — not £1,000 per platform.

The allowance is combined across all platforms
If you earn £600 on eBay, £300 on Vinted, and £300 on Depop — your total is £1,200. You are over the £1,000 threshold even though each platform individually was under it.

Which Platforms Report to HMRC?

Since January 2024, UK digital platforms are required to report seller data to HMRC under the Digital Platform Reporting rules. This applies when annual sales exceed 30 transactions or approximately £1,700.

PlatformReports to HMRC (from Jan 2024)?
eBayYes — 30+ transactions or over ~£1,700/year
EtsyYes — 30+ transactions or over ~£1,700/year
VintedYes — 30+ transactions or over ~£1,700/year
DepopYes — 30+ transactions or over ~£1,700/year
AmazonYes — separate VAT and income reporting
Facebook MarketplaceYes — from January 2024
AirbnbYes — separate property income rules apply

What If You Sell Across Multiple Platforms?

Add up your total income across all platforms for the tax year. If the combined total exceeds £1,000 gross, you should register for Self Assessment.

You only get one £1,000 trading allowance — it is not multiplied by the number of platforms you sell on.

How to File Your Online Selling Income

1

Add up all platform income

Download payment reports from each platform. Total all income received between 6 April and 5 April (the UK tax year).

2

Check whether you're over £1,000

If your combined gross income from all platforms exceeds £1,000, you need to register and file. If under, no action needed.

3

Register for Self Assessment

Register with HMRC by 5 October after the end of the relevant tax year. You'll need a Government Gateway account.

4

File and pay by 31 January

Complete your Self Assessment, claim your allowable expenses (or the trading allowance), and pay any tax owed by 31 January.

File your online selling income with SubmitFox

Start your return for free — you only pay when you're ready to submit.

SubmitFox covers all online selling income — eBay, Etsy, Vinted, Depop and more. Submits directly to HMRC.

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Common Questions

No. Selling personal possessions you already own — furniture, clothes, electronics — is not trading income. It is a disposal of personal assets and is not subject to income tax (though capital gains tax could theoretically apply to high-value items, this is extremely rare for typical household goods).

If you are regularly buying trainers specifically to resell at a profit, HMRC would likely class this as trading. If your total income from this exceeds £1,000 in a tax year, you should register for Self Assessment.

In total. You receive one £1,000 trading allowance per tax year across all self-employed and miscellaneous income. It is not £1,000 per platform.

Keep records of income received from each platform (download payment reports), purchase costs for items you resold, platform fees, postage and packaging costs, and any other business-related expenses. Keep records for at least 5 years after the filing deadline.

Do not ignore it. HMRC letters about online selling are usually either a nudge to check if you need to file, or a formal enquiry. If you have been selling commercially and have not filed, the safest course is to register and file as soon as possible. Voluntary disclosure is treated more favourably than discovered non-compliance.