Do I pay tax on my eBay sales?

Short answer: Not if you're clearing out your own things. If you buy items to resell on eBay, that's trading: the first £1,000 of trading sales a tax year is covered by the trading allowance, and above that you need to report it through Self Assessment.

eBay specifics

• Private or business account? eBay asks people who regularly sell items bought to resell, or things they've made, to register as a business seller. Your account type doesn't decide your tax, though: HMRC looks at what you're actually doing.
• Collectables and one-off big sales: selling your own valuable item (trainers, cards, a watch) isn't trading, but a single personal item sold for £6,000 or more can bring in Capital Gains Tax rules.
• Fees count as costs: if you claim expenses instead of the £1,000 allowance, the fees you pay as a seller go in your costs.

Your own things vs reselling

HMRC treats these very differently, whichever app you sell on.

• Clearing out: selling clothes and things you bought for yourself and used is generally not taxable, even if you sell a lot. You usually sell them for less than you paid, so there's no profit to tax.
• Reselling: buying items (from charity shops, car boots, bales, clearance, wholesale) with the plan of selling them for more is trading. So is making things to sell. That money is trading income.

HMRC looks at signs called the "badges of trade": why you bought the items, how often you sell, whether you go looking for stock, whether you repair or rebrand items, and whether you're aiming for a profit. The more of these apply, the more it looks like trading.

How much can you earn before paying tax?

The first £1,000 of trading income in a tax year (6 April to 5 April) is covered by the trading allowance. If your resale sales are £1,000 or less, and you have no other trading income, you generally don't need to tell HMRC.

• The £1,000 is based on sales, not profit. Sell £1,200 of stock you bought for £1,000 and you're over the allowance.
• It covers all your trading income combined, across every app and any other self-employed work.
• Over £1,000, you report it through Self Assessment. Whether you actually pay tax then depends on your profit and your other income.

Over £1,000 you can take £1,000 off your sales or claim your real costs, whichever leaves you better off. See trading allowance vs expenses.

Deadlines if you're over £1,000

• Register for Self Assessment by 5 October after the tax year ends (for 2026/27, by 5 Oct 2027).
• File and pay by 31 January (for 2026/27, by 31 Jan 2028).
• For 2025/26 the filing and payment deadline is 31 Jan 2027. If you needed to register by 5 Oct 2026 and didn't, register as soon as you can.

Will eBay report me to HMRC?

Online platforms report sellers who make 30 or more sales, or earn more than about £1,700 (€2,000), in a calendar year. Being reported doesn't mean you owe tax. It means HMRC can see your sales, so your own records should match. Read the 30 sales rule explained.

Selling on more than one app?

Most resellers do. The £1,000 allowance and the tax rules apply to your total trading across every platform, but each platform reports you separately. Keep one set of records that covers them all.

Quick questions