Do I owe tax on what I sell online?
HMRC now receives data on nearly four million UK sellers. Six questions tell you whether you are trading, whether you need to register, and what to do if a letter has already arrived.
Why this exists: 3,988,892 sellers reported to HMRC. Usually nothing owed — and that is the answer.
Loading the check…
Rates as at 6 April 2026 — the 2026/27 tax year.
Rather someone else did it?
Partner linksFixed-fee services where a qualified accountant prepares and files your return.
TaxScouts
A real accountant files your return for one fixed fee.
Fixed fee, typically about £169 per return
Get my return doneGoSimpleTax
DIY Self Assessment software that checks for missed savings.
From about £54.99 per tax year
File it myselfWe may earn a commission if you sign up through one of these links. It never changes what we calculate, what we recommend, or the order they appear in.
The rules behind this
Every figure above comes from one of these. Where the tool has interpreted rather than calculated, it says so in the finding.
Whether an activity is a trade is decided on the badges of trade — profit motive, frequency, modification, the way it is financed and the reason for the sale.
The trading allowance exempts the first £1,000 of gross trading income, and may be deducted instead of actual expenses.
Selling personal possessions is not trading; a chargeable gain can still arise on an item worth more than £6,000.
Digital platforms must report sellers who make 30 or more sales or exceed about £1,700 in a calendar year.
The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023
Notification of chargeability is due by 5 October after the end of the tax year.
Questions people ask
I sold £3,000 of my old clothes on Vinted. Do I owe tax?
No. Selling your own used possessions is not trading, and there is no limit on it — £3,000 or £30,000 makes no difference. The only exception is a single item worth more than £6,000, which can produce a capital gain.
Why did HMRC write to me then?
Because the platform reported your gross takings and HMRC could not match them to a return. The letters go out automatically to people above the reporting threshold, and most recipients owe nothing. Reply and say so — that closes it.
Is the £1,000 allowance profit or turnover?
Gross takings, before fees, postage and the cost of the items. That is why it arrives sooner than people expect — £1,200 of sales with £900 of costs is over the threshold even though the profit is £300.
What counts as buying to sell?
Acquiring something with the intention of selling it on at a profit — car boot finds, wholesale stock, bulk clearance lots. The intention at the time you bought it is what matters, which is why the same item can be trading for one person and not another.
What if I do both?
Keep them apart. The trading side is reportable, the personal side is not, and the £1,000 allowance applies only to the trading side. Mixing them in one account is the single thing that turns a simple position into a difficult one.