Do you pay tax on eBay sales in the UK?

It depends on one thing: are you selling your own stuff, or buying to resell for profit? Here's how to tell which side of the line you're on — and what HMRC expects.

Selling your own things vs trading

This is the whole question. eBay is full of both:

• Selling your own used items — old phone, furniture, a bike you've outgrown. Not taxable, even if it adds up, because you're not running a business.
• Trading — buying stock (wholesale, car boots, charity shops, clearance) to sell on for profit, or making items to sell. This is taxable once you pass the allowance.

The £1,000 trading allowance

If you're trading, HMRC gives you a £1,000 Trading Allowance each tax year. Two things people always get wrong:

• It's based on total sales, not profit.
• It's per person, per year, across all platforms — your eBay, Vinted and Depop sales all count together towards the same £1,000.

Under £1,000 of sales, you usually have nothing to report. Over it, you'll likely need to register for Self Assessment and pay tax on your profit (sales minus your costs and fees).

What about eBay reporting me to HMRC?

eBay, like other platforms, must report sellers who pass 30 items or about £1,700 a year. That's a data-sharing threshold — a heads-up to HMRC — not a tax bill. Whether you owe still depends on the £1,000 allowance and whether you're trading.

Don't forget your costs

If you are trading, you're taxed on profit, not sales. You can deduct what you paid for the item, postage, and eBay fees — or claim the flat £1,000 allowance instead, whichever leaves you paying less. Keeping a simple record as you go makes this painless:

Frequently asked