Do I Need to Pay Tax When Selling on Vinted or Other Online Platforms?
With so many of us turning to platforms like Vinted, eBay, or Depop to declutter, resell, or even start side hustles, there’s been a lot of talk recently about whether you now need to pay tax on your sales.
Let’s clear things up. If you’re just selling your old clothes or unwanted items from around the house for less than you originally paid — you’re probably not going to owe any tax. But if you’re treating it more like a business — reselling for profit, creating content, or providing a service — then yes, you might need to declare your income.
Here’s a helpful breakdown to figure out where you stand 👇
Selling Personal Possessions
These are things you own for your own use — either items you’ve bought or been gifted. Think along the lines of:
- Clothes
- Home décor and ornaments
- Kitchen bits
- Furniture like tables and chairs
- Jewellery
- Gadgets like phones and laptops
If you’re simply selling your own personal items (things you no longer need or use), you probably won’t need to pay Income Tax on those sales as long as your are selling the item/s for less than or to the same value of what you paid.
💡 However, if you sell any single item (or a set of items) for more than £6,000, you might need to pay Capital Gains Tax.
Items that count as a set include:
- A collection of chess pieces
- Books by the same author
- Matching ornaments, like a pair of vases
Example – Selling Unwanted Items
You’re having a wardrobe clear-out and list your old clothes and bits from around the house on Vinted and eBay. None of the items individually are worth more than £6,000.
✅ No tax to worry about – even if you sell lots!
Example – Selling a Valuable Item
You’re redecorating and decide to sell a painting you bought years ago for £4,600. It sells for £7,000.
You’d need to check the Capital Gains Tax rules to see if this needs reporting, since the sale is over £6,000. You can find more info here:
🔗 https://www.gov.uk/capital-gains-tax
Selling Goods for Profit
If you’re regularly buying items with the intention to resell them for more money (even if it started as a hobby), HMRC may consider you to be trading.
You might be trading if:
- You buy things to sell on for a profit (e.g., from boot sales or charity shops)
- You make items to sell
- You sell frequently and with the intention of making money
If your total income from trading activities (including content creation or services) is more than £1,000 in a tax year (6 April to 5 April), you’ll need to let HMRC know.
Example – Reselling Clothes and Other Items
You sell some of your old clothes, then realise you love it and start buying more to flip online. You’re doing it regularly now and turning a profit.
👉 You’re likely considered a trader, and you will need to declare this income.
Content Creators & Online Influencers
If you create content or promote your selling pages on platforms like TikTok, Instagram or YouTube — that’s another form of income that might need declaring.
This includes:
- Sponsored posts
- Brand collabs
- Freebies/gifted products in exchange for promotion
- Ad revenue from videos, podcasts, blogs, etc.
Even if you’re not selling products directly, any money or freebies you receive in exchange for promoting something is likely to count as income.
Example – Social Media Influencer
You run a beauty TikTok account where you’re sent products and earn ad revenue from your videos.
👉 You may need to declare this as income, especially if your total trading and content-related income exceeds £1,000.
Use HMRC’s Tool to Check
Still unsure? HMRC has a free tool to help you check if your online income needs to be reported:
🔗 Check if you need to report your income
To use the tool, you’ll need:
- An idea of how much you made (or expect to make) during the tax year
- Whether you share that income with someone else
- If you have other income to declare
Remember, the tax year runs from 6 April to 5 April. Many selling platforms show your income per calendar year (January–December), so you may need to do a bit of maths to calculate it for the tax year.
Online Platforms May Report Your Info
Some digital selling platforms are now required to collect and report your sales data to HMRC. This is being introduced gradually, and it’s always best to stay informed so you’re not caught off guard.
Final Notes
📌 This information was researched and gathered from the official HMRC website and is accurate as of 13th February 2025.
There has been talk of the income threshold changing to £3,000 in the future, but this may not come into effect until as late as 2029, according to Martin Lewis (Money Saving Expert).
Selling online is a fab way to declutter, earn some cash, and even start a business — but it’s important to know where you stand with tax. When in doubt, check with HMRC or speak to a qualified accountant.
If you found this blog helpful, feel free to share it with fellow sellers 💕
And don’t forget to check out our New2U Preloved Boutique for handpicked preloved fashion at beautiful prices!