While that sounds alarming, tax experts say most casual sellers have nothing to worry about — as long as they understand the rules.
Here’s what you actually need to know.
Selling your old stuff is usually tax-free
If you’re clearing out clothes, furniture or household items you originally bought for more than you’re selling them for, that’s not normally considered trading.
In simple terms:
- Selling unwanted personal belongings at a loss?
- Not buying items specifically to resell?
- Not running it like a business?
You’re unlikely to owe income tax.
The £1,000 HMRC Trading Allowance
Where people can get caught out is the £1,000 trading allowance.
If you earn more than £1,000 in total income (not profit) from trading activities in a tax year, you may need to:
- Register for self-assessment
- Declare the income to HMRC
- Pay tax on any profit after expenses
Lee Murphy, managing director at The Accountancy Partnership , says many side hustlers don’t realise how quickly they can cross this threshold: “HMRC uses data provided by platforms like Vinted, Etsy and eBay to match against tax records.
“If you exceed the £1,000 trading allowance and don’t declare it, you could receive reminder letters. Ignoring those may lead to further enquiries.”
What is the 30 sales rule on Vinted and eBay?
From this year, online platforms must report seller data to HMRC if users:
- Complete 30 or more transactions in a year, or
- Exceed certain gross sales thresholds (for example, £1,700 on Vinted over 365 days)
This reporting requirement doesn’t automatically mean you owe tax. It simply means HMRC may have visibility of your activity.
The key issue is whether you’re trading with the intention of making a profit.
Are you worried about the Etsy, eBay, Vinted, etc. sales tax – I hope I can put your mind at rest.
Please share with anyone this impacts
You can watch back the full @itvMLshow here on ITVX: https://t.co/V2Ez0svipp pic.twitter.com/swbozdiP7F
— Martin Lewis (@MartinSLewis) January 12, 2024
How to reduce any tax you owe
If you are running a small side hustle, remember you’re taxed on profit, not total sales.
That means you can usually deduct legitimate business expenses such as:
- Postage and courier fees
- Packaging materials
- Platform seller fees
- Stock costs
Keeping clear records now can save stress later — and may significantly reduce any tax bill.
When do I need to start paying tax on Vinted and Ebay sales?
You should review your position if:
- You regularly buy items to resell
- Your sales are consistent throughout the year
- Your total trading income exceeds £1,000
- You’ve passed the 30-transaction mark
If in doubt, checking your sales history and doing a simple income calculation is a sensible first step.
Recommended reading:
For most people doing a genuine spring clear-out, there’s no need to panic.
But if your online selling has evolved into a steady side income, it’s worth making sure you’re on the right side of the rules.
With HMRC now receiving platform data automatically, being proactive — rather than waiting for a letter — is the safest (and often cheapest) approach.
