Depop and Vinted Reseller Tax UK 2026/27: When Selling Clothes Becomes a Business
Selling your own old clothes on Vinted or Depop is not taxable — but buying stock to resell for profit is trading income once turnover passes £1,000 a year. Here is exactly where the line falls in 2026/27.
The wardrobe-clearout vs trading test
HMRC does not tax you for selling your own old clothes, even repeatedly, because this is treated as disposing of personal possessions rather than running a business — most personal items are sold at a loss relative to their original cost, and there is no "badge of trade" (an organised, repeated buying-to-resell pattern) present. The moment you start buying stock — charity shop finds, wholesale clearance lots, boot sale bundles — specifically to resell for a profit, the activity becomes trading, and the normal self-employment tax rules apply.
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Calculate income tax, Class 2 and Class 4 National Insurance for self-employed and sole traders for 2025/26.
Open Self-Employed Tax calculatorWorked example 1: genuine wardrobe clearout
Zara lists 60 items of her own clothing on Vinted over a year, raising £950 total, all items she originally bought for herself and no longer wears.
Result: not taxable. This is a disposal of personal possessions, not trading — regardless of the number of items or the fact that Vinted may report the sales data to HMRC under the platform reporting rules.
Worked example 2: hybrid seller crossing into trading
Ben starts by selling his own clothes on Depop, then begins buying vintage clothing from charity shops specifically to clean up, photograph attractively and resell at a markup, alongside his personal items.
| Activity | Tax treatment |
|---|---|
| Selling own old clothes | Not taxable |
| Buying vintage stock to resell for profit | Trading income |
Ben needs to separate the two activities in his own records: his personal clearout sales stay outside the tax system, while his purchased-stock resales count toward his trading turnover, which he must monitor against the £1,000 trading allowance threshold.
Worked example 3: full-time reseller
Layla runs a full-time Depop and Vinted resale business, sourcing stock from wholesale clearance lots. Her combined turnover across both platforms is £18,000 a year, with £6,500 of costs (stock, fees, postage).
| Item | Amount |
|---|---|
| Combined turnover (Depop + Vinted) | £18,000 |
| Allowable expenses | £6,500 |
| Taxable profit | £11,500 |
Layla must register for Self Assessment (her turnover is well above the £1,000 trading allowance threshold), declare £11,500 taxable profit, and pay income tax and Class 4 National Insurance on it. She is well below the £90,000 VAT threshold.
Digital platform reporting: what it means for you
Since January 2024, platforms including Vinted, Depop, eBay and Etsy have been required to collect seller information and, above certain sales-volume thresholds, report it to HMRC annually. This applies to all sellers crossing the threshold, whether or not their activity is actually taxable — so being included in a platform report does not automatically mean you owe tax, but it does mean HMRC has visibility of your activity, making an honest self-assessment of whether you are "trading" the sensible starting point for any regular seller.
Use the self-employed tax calculator to estimate tax due on genuine reselling profit, and keep clear records separating personal item sales from purchased-stock resales from day one.
Frequently asked questions
Do I have to pay tax on Vinted or Depop sales?
Selling your own used personal clothing that you originally bought for yourself is generally not taxable, because you are simply disposing of personal possessions, usually at a loss compared to what you paid, not making a trading profit. Tax only becomes relevant if you are buying items (from charity shops, wholesalers, clearance sales) specifically with the intention of reselling them for profit — that is trading income.
What is the difference between clearing my wardrobe and 'trading' on Vinted?
HMRC looks at 'badges of trade' — indicators like buying items specifically to resell, a repeated and organised pattern of buying and selling, holding stock, and actively marketing items — to decide whether an activity is trading. Selling 40 items from your own wardrobe once is clearing out possessions. Regularly sourcing items from charity shops or wholesale lots, listing dozens of new items every week, and running it like a shop is trading, regardless of which platform you use.
How does the £1,000 trading allowance apply to reselling?
If you are trading, the first £1,000 of gross trading turnover (not profit) each tax year is tax-free under the trading allowance, and you do not need to register for Self Assessment if this is your only such income and stays under £1,000. Above £1,000 turnover, you must register for Self Assessment, and can choose to deduct the flat £1,000 allowance instead of your actual expenses if that produces a lower taxable profit.
Do Vinted and Depop report my sales to HMRC?
Yes, under the OECD digital platform reporting rules in force in the UK since January 2024, platforms including Vinted and Depop must collect seller information and report seller data to HMRC where activity exceeds certain thresholds (broadly, more than 30 sales or around €2,000 in a calendar year). This applies regardless of whether the seller is trading or just clearing personal possessions — the reporting obligation is based on sales volume, not on whether the income is actually taxable.
Will I be taxed just because Vinted reports my sales to HMRC?
No — being reported does not automatically mean you owe tax. If you are genuinely selling your own possessions rather than trading, this income is not taxable regardless of the reporting. However, having your data reported does mean HMRC has visibility of your sales activity, so if you are trading and have not declared it, this significantly increases the likelihood of a compliance check or 'nudge letter'.
What expenses can a genuine reseller deduct?
Cost of stock purchased for resale, platform selling fees and payment processing fees, postage and packaging, and a reasonable proportion of home costs if stock is stored or processed at home. As with any small trading activity, you choose between deducting these actual expenses or claiming the flat £1,000 trading allowance, whichever produces a lower taxable profit.
Does it matter if I sell through multiple platforms (Vinted, Depop, eBay)?
No — HMRC assesses your total trading turnover and profit across all platforms combined, not per platform. If your combined turnover across Vinted, Depop and eBay exceeds £1,000, the trading allowance test and Self Assessment registration requirement apply to the combined total, not separately to each platform.
Do I need to charge VAT as a clothing reseller?
Only once your total taxable turnover across all trading activity exceeds the £90,000 VAT registration threshold in a rolling 12-month period — a level reached only by genuinely substantial resale operations, well beyond most individual Vinted or Depop sellers.
What should I do if I've been trading without declaring it?
Register for Self Assessment and make a voluntary disclosure to HMRC as soon as possible. Coming forward before HMRC contacts you (an unprompted disclosure) generally results in significantly lower penalties than waiting to be identified through platform-reported data, where penalties for a prompted disclosure are set higher under HMRC's penalty framework.
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