Do eBay and Vinted sellers need to tell HMRC about their income?

If you sell on eBay, Vinted, Etsy, Facebook Marketplace or similar platforms, you’ve probably asked yourself the same question at least once:
“Do I actually need to declare this to HMRC?”

The honest answer is: sometimes yes, sometimes no.

A lot of people assume that if they are only selling online part time, HMRC will not be interested. That is not really how the rules work.

What matters is what you are selling, why you are selling it, how often you do it, and how much income you receive. HMRC says people selling unwanted personal belongings from time to time usually do not need to tell them, but buying or making goods to sell at a profit is much more likely to count as trading.

If you are just clearing out your wardrobe, loft or garage and selling your own old things, you will usually not have Income Tax to pay. HMRC specifically says you are unlikely to pay tax if you sell personal items from your home, and their online selling guidance says occasional sales of unwanted belongings do not usually need to be reported.

If, however, you buy items to resell, make products to sell, or sell regularly with a profit motive, HMRC is much more likely to see that as a trade. In that case, your online selling income may need to be declared.

And there is one very important number to know:
£1,000.

HMRC’s trading allowance means that if your total trading income is more than £1,000 in a tax year, you may need to tell HMRC about it. The tax year runs from 6 April to 5 April.

If you would like further guidance on the tax situation on selling goods online, or even about growing your business, please do get in touch.