Do you have to pay tax when selling on Vinted, eBay or Etsy in the UK?

Selling online is pretty normal now.  Whether it’s clearing out clothes on Vinted, listing bits on eBay, or selling something you’ve made on Etsy, it’s an easy way to bring in a bit of extra money. But at some point, most people stop and think: 

Do I actually need to pay tax on this? 

The honest answer is… sometimes. It depends on how you’re selling and how HMRC would view it. 

Do you have to pay tax 

Do you have to pay tax when selling on Vinted, eBay or Etsy in the UK? 

You usually don’t need to worry about tax if: 

• You’re selling your own personal belongings 
• You’re not making a profit 
• You’re only selling occasionally 
• Your total income from selling is under £1,000 in a tax year  

Where it changes is if things start to look more like a side hustle. 

You may need to pay tax if: 

• You’re buying items specifically to resell 
• You’re making products to sell (common on Etsy) 
• You’re selling regularly or in larger volumes 
• Your income from selling goes over £1,000  

That £1,000 threshold is important. It’s what HMRC calls the trading allowance. 

What is the £1,000 trading allowance?

The trading allowance means you can earn up to £1,000 a year from side income without usually needing to pay tax on it. In most cases, you won’t need to report it either. 

A couple of things people often miss though: 

• It’s based on total income, not profit 
• It applies across all your side income combined 
• If you already complete a Self Assessment tax return, you may still need to include it  

Once you go over £1,000, that’s when you’ll normally need to declare it to HMRC. 

When does HMRC consider selling online a business?

This is where it can get a bit blurred. 

HMRC doesn’t just look at how much you earn. They look at what you’re actually doing. 

You’re more likely to be classed as trading if you: 

• Buy things specifically to resell 
• Make products to sell 
• Sell regularly or consistently 
• Improve or customise items before selling 
• Run it in a more structured way (lots of listings, repeat stock, etc.)  

A simple way to think about it: 

Selling your old clothes = fine 
Buying stock to flip for profit = likely trading 

That’s usually the line HMRC draws. 

Do I need to register for Self-Assessment?

If you cross that £1,000 threshold or you’re clearly trading, then yes, you’ll usually need to register. 

You’ll need to: 

• Register for Self Assessment with HMRC 
• Submit a tax return each year  

RIFT Tax Refunds can help you with this, if you need any advice or want to check if you qualify.  

The key deadline to remember is: 

• 5th October after the end of the tax year you started  

Missing this can lead to penalties, even if it was just a misunderstanding. 

Do Vinted, eBay and Etsy report your earnings to HMRC? 

Yes, they do now. 

Online platforms are required to share seller information with HMRC under international reporting rules. 

This usually applies if you: 

• Make 30 or more sales, or 
• Earn around £2,000 or more in a year  

One thing to be clear on: 

This doesn’t mean you automatically owe tax. It just means HMRC has more visibility of what’s going on. 

So if you should be declaring income, it’s much easier for them to spot. 

Do you pay tax if you sell personal items at a loss? 

No, if you’re just selling your own belongings for less than you paid for them (which most people are), there’s no profit, so there’s no tax to pay. 

That’s why most casual Vinted sellers don’t need to worry! 

What expenses can you claim if you are reselling? 

If you are trading, you only pay tax on your profit, not your total sales. 

You can usually deduct things like: 

• Platform fees 
• Postage and packaging 
• The cost of items you bought to resell 
• Materials if you’re making products  

You can either: 

• Use the £1,000 trading allowance, or 
• Deduct your actual expenses  

What happens if you don't declare your income?

If HMRC thinks you should have declared income and didn’t, they can: 

• Ask for tax from previous years 
• Add interest 
• Charge penalties  

With platforms now sharing data, this is something they’re paying more attention to. 

How do I declare the money I'm making online?

Even if you're not strictly running a business, you may still have to tell the taxman about the money you're making. Remember that working PAYE doesn't mean you can hide any extra income you've got from HMRC.

If you're making enough, or making it regularly enough, that you need to declare the money, here's what you do:

• Register for Self Assessment: you can do this online at the HMRC site. You'll get a Unique Taxpayer Reference number and an activation code for your Government Gateway account.
• Keep your paperwork: you need records of all the money you've got coming in and going out.
• File a Self Assessment tax return each year: you can do this online or on paper.

If you make under £1,000 this comes under the Trading Allowance rules and you don't have to declare it.

Real-life examples: when you do (and don’t) need to pay tax 

Emma’s clearing out her wardrobe on Vinted 

Emma’s had a clear-out and listed a load of clothes she doesn’t wear anymore. Over the year, she makes around £400 in total. She originally paid more for most of these items, so she’s not making a profit, just getting a bit of money back. 

Does Emma need to pay tax? 
No. 

This is classed as selling personal belongings, not trading. There’s no profit, and she’s well under the £1,000 trading allowance. 

Jake’s reselling trainers on eBay 

Jake starts picking up trainers in sales and reselling them on eBay for a profit. Over the year, he brings in £2,500 in sales. After costs, he’s made around £800 profit. 

Does Jake need to pay tax? 
Yes, most likely. 

Even though his profit is under £1,000, his income (sales) is over £1,000, and he’s buying specifically to resell. HMRC would likely view this as trading. 

He would need to: 

• Register for Self Assessment 
• Declare his income 
• Deduct his expenses to work out his taxable profit  

Priya’s selling handmade candles on Etsy 

Priya makes candles at home and sells them on Etsy. Over the year, she brings in £900. She’s spent money on materials, packaging and Etsy fees, so her actual profit is lower. 

Does Priya need to pay tax? 
Probably not, but it depends. 

If her total income stays under £1,000, she can usually use the trading allowance and won’t need to declare it. 

However, if this grows or becomes more regular, she may need to register and start reporting it. 

Tom’s mix of selling and freelance work 

Tom sells some old clothes on Vinted and makes £300. He also does a bit of freelance work on the side and earns £900. 

Does Tom need to pay tax? 
Yes. 

The £1,000 trading allowance applies to his total side income combined, not each activity separately. In Tom’s case, his total is £1,200, so he would need to declare it. 

The bottom line 

If you’re just having a clear out and selling the odd item, you’re probably fine. If you’re regularly selling, buying to resell, or bringing in more than £1,000, it’s worth taking a closer look. 

That’s where people either miss something they should be doing, or worry unnecessarily. 

Not sure where you stand? 

If you’re unsure whether your selling counts as taxable income, it’s worth getting a proper view of your overall tax position. 

A lot of people either: 

• Miss something they should declare, or 
• End up overpaying tax elsewhere without realising  

You can use the RIFT tax refund calculator to quickly check if there’s anything you might be owed.