Answers · UK 2025/26
Do online marketplace sellers on Vinted, Etsy or eBay need to register for Self Assessment?
You must register for Self Assessment and declare profits if your total trading income from online selling exceeds GBP 1,000 in a tax year, or if you sell goods that qualify as capital assets with gains above GBP 3,000.
Full answer
The GBP 1,000 Trading Allowance HMRC provides a GBP 1,000 trading allowance per tax year. If your total gross income from all online selling activity is GBP 1,000 or less, you do not need to register for Self Assessment or pay tax on it. The allowance covers income from platforms such as Vinted, Etsy, eBay, Depop and similar marketplaces. When You Must Register If your gross trading income exceeds GBP 1,000, you must register for Self Assessment and file a tax return. You then choose whether to: - Deduct the GBP 1,000 trading allowance (simplest, no receipts needed), or - Deduct actual allowable business expenses (better if costs are high) You pay income tax and Class 4 NI on the resulting profit at your marginal rates. Casual Selling vs. Trading Selling personal possessions (second-hand clothes, used household goods) is generally not trading and not subject to income tax. However, if you regularly buy items with the intention of reselling at a profit, HMRC considers this a trade. The 'badges of trade' tests -- frequency, profit motive, modification of goods, and so on -- determine whether activity is taxable trading. Capital Gains Considerations If you sell personal possessions (chattels) for more than GBP 6,000 each, CGT may apply. The annual exempt amount is GBP 3,000 for 2026/27. Wearable items and cars are generally exempt from CGT. DAC7 Reporting by Platforms From January 2024, digital platforms operating in the UK must report seller data to HMRC under DAC7 rules. Platforms share information on sellers who complete 30 or more transactions or earn over EUR 2,000 (approximately GBP 1,700) in a calendar year. HMRC receives this data automatically, so underreporting is increasingly detectable. Deadlines You must register for Self Assessment by 5 October following the end of the tax year in which you exceeded the threshold. The filing and payment deadline is 31 January the following year.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.