Wardrobe clear-outs
Occasional sellers unsure if they need to tell HMRC.
Vinted, Depop and eBay: when selling becomes a business
Clearing your wardrobe is not a business. Buying to resell for profit usually is. Here is where the line sits and what it means for tax.
- ICAEW/ACCA regulated
- Chartered Accountants
- Fixed monthly fees
- MTD-ready
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Part of our guide to creator tax guide UK.
Quick answer
Selling your own unwanted belongings occasionally is not taxable. If you buy stock, make items, or sell regularly to turn a profit, HMRC treats it as trading and you may need to register for Self Assessment once income passes £1,000 a year.
On this page
Contents
Who this is for
Is this you?
Reselling side hustles
Buying stock, thrifting or sourcing to resell for profit.
Handmade sellers
Crafters and makers selling items they have created.
Growing shops
Sellers whose turnover is approaching or past £1,000 a year.
Income streams
Everything we handle for you
- Vinted sales
- Depop sales
- eBay sales
- Facebook Marketplace
- Etsy
- Vintage and thrift reselling
Sound familiar?
Problems you face, answered
How we help
The work we do for you
Tax explained
How Vinted Depop eBay tax UK works
HMRC draws a line between selling personal possessions and running a trade. Selling your own coat that no longer fits is not trading. Buying ten coats specifically to resell at a profit is.
The "badges of trade" tests HMRC uses include how often you sell, whether you bought items with resale in mind, whether you altered or improved them, and whether you actively market them. The more of these that apply, the more likely you are trading.
If you are trading, the first £1,000 of gross trading income in a tax year is covered by the trading allowance and is tax-free, with no need to register if that is all you earn.
Once trading income exceeds £1,000, you generally need to register for Self Assessment and report the income, even if your actual profit after costs is small.
You then choose between deducting the £1,000 trading allowance from income, or deducting your actual allowable expenses — whichever gives the better result. You cannot do both.
Profit is taxed as income: added to any other income you have and taxed at 20% basic rate, 40% higher rate or 45% additional rate, alongside Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above that.
Digital platform reporting rules mean Vinted, Depop and eBay must report seller activity to HMRC where sellers pass certain thresholds, typically around 30 sales or £1,700 in a year, though HMRC receives data more widely than that headline figure suggests.
This does not create new tax — it simply gives HMRC visibility of income that was always meant to be declared if it counted as trading.
If your reselling grows into a sizeable side income, it is worth reviewing whether a limited company might suit better, particularly once profits regularly exceed the higher rate threshold.
Good records from day one — what you paid, what you sold for, fees and postage — make it far easier to prove genuine profit if HMRC ever asks questions.
Source: Income Tax rates and allowances (gov.uk) · Self Assessment (gov.uk)
Worked example: a growing Depop reseller
- Gross sales (year)
- £14,200
- Cost of stock purchased
- £6,800
- Platform fees and postage
- £1,900
- Trading profit
- £5,500
- Personal Allowance used elsewhere (employed)
- N/A — added to other income
- Class 4 NIC (6% on profit above £12,570 threshold, if sole income)
- Depends on total income
- Income Tax at basic rate (20%) if within basic band
- £1,100
Illustrative example, not a client result. Figures are illustrative for 2026/27 and depend on your total income from all sources.
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Expenses
Reseller expenses: what Vinted, Depop and eBay sellers can claim
Allowable expenses for Vinted and Depop sellers UK cover the real cost of sourcing, preparing and shipping stock, not just the sale price you list. Stock purchased for resale, postage, platform fees and mileage to charity shops or wholesalers are usually deductible against your trading profit. What you cannot claim is the value of items you are simply clearing from your own wardrobe rather than reselling for profit. See our trading allowance guide and record-keeping apps to keep stock costs organised.
Usually claimable
- Cost of stock purchased for resale
- Postage and packaging materials
- Platform and payment processing fees
- Mileage or travel to source stock
- Photography props and lighting for listings
- A reasonable share of home costs used for storage or photography
- Storage boxes, garment rails or bags used to organise stock
Usually not claimable
- The original cost of items you are simply clearing out, not reselling for profit
- Personal use items kept alongside stock
- Everyday clothing you wear yourself rather than resell
- Fines or penalties for late Self Assessment registration
Keep purchase receipts for every item of stock from day one — it is the easiest way to prove genuine profit if HMRC asks, and our creator expenses checklist shows what else to track.
How HMRC’s rules apply to content creators
If you are self-employed
Self-employed costs must be incurred wholly and exclusively for your trade. If you use the £1,000 trading allowance, you cannot also deduct actual expenses against that same income. Equipment treatment depends on cash basis or traditional accounting.
If you run a limited company
A limited company deducts costs incurred wholly and exclusively for its business. Equipment may need capital allowances rather than an immediate expense deduction. Personal use or company-paid private costs can create a taxable benefit or director’s loan entry; company ownership is not a blanket deduction.
For separable mixed-use costs, such as a phone bill, claim only the identifiable business proportion and keep evidence. This does not make ordinary clothing or every dual-purpose purchase deductible. A receipt alone does not prove a business purpose: retain the brief, invoice or usage record too.
Costs to review for your work
- Stock bought for resale, packaging and marketplace selling fees
- Business postage, payment processing and product photography costs
- The business share of storage and equipment, subject to the accounting basis
Everyday clothing, ordinary grooming, personal meals, private gaming and fines are generally not deductible. Qualifying costumes or protective clothing and business-travel subsistence have different rules. Client entertaining is generally disallowed. Receiving a product from a brand does not automatically create an expense: record the income treatment separately and deduct only an allowable business cost.
HMRC: self-employed expensesHMRC: business travelHMRC: clothingHMRC: company deductionsHMRC: capital allowancesHMRC: creator income and gifts
Keep records alongside our creator expenses checklist, or discuss your costs with our bookkeeping team.
General UK guidance, not personal advice. The deduction depends on your facts and accounting basis.
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Structure
Sole trader or limited company?
£
Sole trader£46,111
Limited company£46,091
Illustrative estimate only. Uses the published 2026/27 tax configuration. Assumes a single-director company drawing all profit, with no Employment Allowance. Excludes expenses, student loans, pensions, other income, Scottish rates and individual circumstances. Not tax advice.
VAT & MTD
VAT and Making Tax Digital
VAT
Most resellers stay well under the £90,000 VAT registration threshold, but if turnover across all your trading activities approaches this level, you will need to consider VAT registration and how it affects your margins.
Registration threshold: £90,000 · Deregistration: £88,000
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
Diary
Key deadlines
5 October
Register for Self Assessment if this is your first year of trading income over £1,000.
31 January
Online return and payment deadline.
Monthly accounting packages
Accountant packages for content creators
Self-employed or limited company, choose the support that fits how you trade. We review income such as Vinted sales, Depop sales, eBay sales as part of agreeing your scope.
Self-employed accountant packages for content creators
Trading in your own name? Choose support for your personal tax return and, where included, bookkeeping and MTD Income Tax updates.
Annual fees use the upper limit of your selected band: Starter 1%, Complete 0.75%. Monthly payments are the annual fee divided by 12, excluding VAT. Starter does not include bookkeeping. Turnover above £1 million is quoted individually.
Self Employed Starter
For sole trader creators who just need their tax return done properly
£20.83
per month + VAT
£250.00 per year + VAT · Bookkeeping not included
- Your annual Self Assessment tax return, prepared and filed
- All your creator income streams covered: AdSense, brand deals, affiliates, tips and subscriptions
- Gifted products, PR trips and freebies declared correctly
- Allowable expense review so you claim everything you are entitled to
- Deadline reminders ahead of every filing and payment date
- Free basic tax advice by email through the year*
Self Employed Complete
For full-time self-employed creators who want their books kept for them
£39.99
per month + VAT
£479.88 per year + VAT · Bookkeeping included
- Everything in Self Employed Starter
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Making Tax Digital for Income Tax quarterly updates, where required
- Payment on account planning so January never surprises you
- Sole trader vs limited company review as your income grows
- Quarterly check-in on your numbers and tax position
Limited company accountant packages for content creators
Trading through a company? Choose support for company accounts, Corporation Tax and the director services included below.
Essential/Compliance
For creators who have just set up a limited company
From £45.83
per month + VAT
- Year-end company accounts for your creator business
- Corporation Tax return (CT600) and tax computation
- Confirmation statement preparation and filing support (excludes the Companies House filing fee)
- One director Self Assessment return (salary and dividends from the same company)
- Deadline reminders ahead of every filing date
- Free basic tax advice by email through the year*
Core/Complete
For full-time creators with brand deals and platform income
From £62.50
per month + VAT
- Everything in Essential/Compliance
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Quarterly Making Tax Digital VAT returns
- Director payroll with RTI filing and pension submissions
- Quarterly review call on your numbers and tax position
- Gifted items, overseas payouts and payment platform reconciliation
Growth
For creator businesses with editors, managers or a team
From £75.00
per month + VAT
- Everything in Core/Complete
- Payroll for up to five team members, such as editors or assistants
Starting fees exclude VAT. Your turnover, records and agreed work determine the final quote. *Basic tax advice is free; technical work is quoted separately. MTD support applies where required.
See all fees and one-off servicesWant this off your plate?
Talk through your platform income, allowable expenses and next steps with a creator accountant.
Book your free creator tax callWritten and reviewed by
Waqas Sagar ACA FCCA FMAAT
Chartered Accountant with 18+ years' experience and founder of Accotax. Has served over 5,000 clients across London and the UK.
About Waqas SagarAccotax on LinkedIn Last reviewed: 2026-09-21
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Does Vinted report to HMRC?
Yes — Vinted reports UK seller data to HMRC each year. Whether that means you owe tax depends on whether you are trading, not on the report itself.
How much can you sell on eBay before paying tax?
There is no single "eBay limit" for tax — the £1,000 trading allowance covers profit if you are trading, while eBay separately reports data to HMRC once you pass around 30 sales or £1,700.
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