Do I need to tell HMRC about selling online?
Etsy, eBay, Vinted and other selling sites now report their sellers to HMRC. Answer five questions to see whether you need to do anything, and roughly what you'd pay.
Keep your selling records in one place
Our Online Seller Tax Calculator spreadsheet does this check from your actual sales, site by site, and keeps personal items out of your trading total.
- Sales by site, with the sites likely to report you to HMRC flagged
- Fees, postage, packaging and materials sorted into the right expense categories
- Your tax estimate and every figure for the 2025/26 return, in Excel or Google Sheets
Selling online and tax: the rules
Selling your own things isn't trading
Clearing out your wardrobe on Vinted, or selling a sofa on Facebook Marketplace, isn't trading if you're selling things you owned for your own use, usually for less than you paid. There's no income tax on it.
You're more likely to be trading if you make things to sell, buy things to resell at a profit, or sell regularly to make money. HMRC calls these the "badges of trade".
One exception: a single personal item sold for more than £6,000, like a piece of jewellery or art, can be liable to Capital Gains Tax.
The £1,000 trading allowance
If your trading sales are £1,000 or less in a tax year, before any costs, you don't need to tell HMRC. This is the total from all sites and markets together.
Above £1,000, register for Self Assessment and file a return. You can then take off either your actual costs or a flat £1,000, whichever leaves a lower profit.
When selling sites report you
Since 1 January 2024, sites like Etsy, eBay, Vinted, Depop and Amazon collect details about their sellers. Each January they send HMRC the previous calendar year's sales for sellers with 30 or more sales, or more than €2,000 (about £1,700) received, and send the seller a copy.
Being reported isn't a tax bill. If your sales were personal items, or your trading was within the £1,000 allowance, there's nothing to pay. HMRC may write to you, so keep a simple record of what you sold.
Key dates for 2025/26
- 5 October 2026: register for Self Assessment if this is your first return. Missed it? Register as soon as you can.
- 31 January 2027: file your online return and pay what you owe
- 31 July 2027: second payment on account, if HMRC asks for one
What this checker leaves out
- Losses, if your costs were more than your sales
- Savings interest, dividends, rental income and capital gains
- Student loan repayments and the High Income Child Benefit Charge
- VAT, which only applies once your sales go over £90,000 in 12 months
It also assumes the tax on your job was taken correctly through PAYE. HMRC's own calculation, when you file, is the final word.
Already earn more from self-employment? Try the self-employed tax calculator for your full January bill.