TidyBooks UK

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.

What buyers paid for things you made, or bought to resell, across every site and market. Leave out your own unwanted things, like old clothes. Enter 0 if that's all you sold.

Selling and payment fees, postage, packaging, materials and stock. Leave blank if you don't know: you can use the £1,000 allowance instead.

Before tax, for the same year. It decides which tax rate your selling profit falls into. Leave blank if none.

January to December, counting everything, personal items too. Your sales history on the site shows this.

Where do you live?

Scotland has its own income tax rates.

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.

See the seller spreadsheet

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
What this checker leaves out

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.