Last updated: 17 April 2026
Do I Have to Pay Tax Selling on eBay UK? (2026 Guide)
Short answer. If you’re selling your own old stuff on eBay — clothes, electronics, things from the attic — you almost certainly don’t owe any tax. HMRC says this explicitly.
If you’re buying items to resell on eBay for profit, it depends on how much you make. Under £1,000 gross in a tax year? No tax, no registration needed. Over £1,000 gross? You need to register for Self-Assessment.
That’s the quick version. The rest of this post explains why, with the actual HMRC rules behind it.
This is an explainer of HMRC’s published guidance, not tax advice. If your situation is complicated, talk to an accountant.
Selling your own stuff on eBay — no tax
If you’re clearing out your wardrobe, loft, or garage and selling things you previously owned for your own use, HMRC does not consider this trading. Their guidance is clear:
“You’re clearing out your attic and decide to sell your unwanted items using online marketplaces. None of the items you sell are worth more than £6,000. It’s unlikely that you’ll need to tell us about this income or pay any tax, no matter how many items you sell.”
— HMRC, Check if you need to tell HMRC about your income from online platforms
No matter how many items you sell. No matter how much you make in total. If it was your own stuff, it’s not trading income.
The only exception: if a single item (or a matching set) sells for more than £6,000, Capital Gains Tax might apply. For most eBay sellers, this is not a concern.
Buying to resell on eBay — when it becomes trading
This is where the tax question actually matters. The moment you buy something with the intention of selling it for a profit, HMRC considers that trading.
It doesn’t matter where you source — car boot sales, charity shops, wholesale, Facebook Marketplace clearances. If you bought it to flip, it’s trading.
“After earning some money from selling unwanted clothes, you start buying items from car boot sales and charity shops. You sell these items through online marketplaces, with the intention of selling them for more money than you paid for them. This is something you do regularly. You have received income through online platforms from selling goods and you may need to tell us about this income.”
HMRC looks for three signals: intent to profit, regularity, and buying to sell. If two or three of those apply, you’re in the trading category.
The £1,000 rule (and why it catches people)
Once you’re in the trading category, the £1,000 trading allowance decides what happens next.
If your gross trading income is £1,000 or less in a tax year (6 April to 5 April), you don’t need to tell HMRC or register for Self-Assessment. This is called “full relief.”
If your gross trading income is over £1,000, you must register for Self-Assessment by 5 October of the following tax year.
Here is the part that catches people: gross means total sales, not profit.
“Gross income means the total amount you would put on your tax return before any allowances or expenses are taken off.”
So if you sold £1,500 on eBay across the year, but after stock cost, eBay fees, and postage your actual profit was £200 — you still crossed £1,000 gross. You still have to register. This trips up a lot of part-time sellers who think “I barely made anything” but whose total sales tell a different story.
Once you register, you choose how to reduce your taxable amount: either use the £1,000 as a flat deduction, or claim your actual expenses. Whichever gives you the lower taxable profit. You cannot use both.
eBay now reports your sales to HMRC
From January 2024, eBay and other UK-operating digital platforms are required to collect seller information and report certain activity to HMRC. This is an obligation on the platforms, not on you.
But the practical effect is straightforward: HMRC can now cross-check what you declare on your tax return against what eBay says you received.
HMRC’s guidance on income from online platforms was first published 28 November 2024 and last updated 13 February 2025. It applies to platforms including eBay, Vinted, Depop, Etsy, and Airbnb.
If you’ve been selling on eBay for a few years without thinking about tax, the data is probably already sitting in HMRC’s system. Not a reason to panic, but a reason to get your records straight.
Side hustle tax — selling on eBay with a day job
This is the situation most eBay sellers are in. You work a normal job Monday to Friday, and you list on eBay evenings and weekends.
The rules don’t change because you already have a job. If your eBay trading income crosses £1,000 gross, you register for Self-Assessment and report it alongside your employment income.
The difference is the tax rate. Your Personal Allowance (£12,570 for 2026–27) is almost certainly already used up by your salary. So every pound of taxable eBay profit sits on top of your employment income and gets taxed at your marginal rate:
- £12,571 to £50,270 — 20% (Basic rate)
- £50,271 to £125,140 — 40% (Higher rate)
- Over £125,140 — 45% (Additional rate)
Source: HMRC, Income Tax rates and Personal Allowances, 2026–27
Most side-hustle eBay sellers are basic-rate taxpayers, so the tax on eBay profit is 20%. National Insurance (Class 2 and Class 4) is separate and has its own thresholds on self-employed profits.
If eBay selling is your only income (say you’re between jobs or a stay-at-home parent), you get the full Personal Allowance against your reselling profit. Under £12,570 taxable profit? Your Income Tax bill is £0, though you still have to file if gross was over £1,000.
Worked example: eBay fees, tax, and what you actually keep
This is what a real eBay side hustle looks like when you do the maths.
The situation: You have a day job (basic-rate taxpayer). Across the tax year you source 50 items from car boots and charity shops for an average of £5 each. You sell them on eBay for an average of £40 each.
Gross sales: 50 items × £40 = £2,000
eBay fees eat into this first. eBay charges a final value fee of around 12.8% plus 30p per order for most categories. On £2,000 in sales, that’s roughly:
- eBay fees: £2,000 × 12.8% + (50 × £0.30) = £256 + £15 = £271
- Stock cost: 50 × £5 = £250
- Postage and packaging: 50 × £4 = £200
- Petrol to car boots: £80
Total actual expenses: £801
Now the tax calculation. Gross is £2,000, so you must register for Self-Assessment. You pick between:
- Option A — £1,000 trading allowance: £2,000 − £1,000 = £1,000 taxable profit
- Option B — actual expenses: £2,000 − £801 = £1,199 taxable profit
The £1,000 allowance is better here. Taxable profit = £1,000. At 20% basic rate, that’s £200 in Income Tax.
What you actually keep:
- Received from eBay (after fees): £2,000 − £271 = £1,729
- Minus stock: −£250
- Minus postage/packaging: −£200
- Minus petrol: −£80
- Minus Income Tax: −£200
- Net in your pocket: £999
From £2,000 in sales, you kept £999. Half. eBay fees and tax together took the other half. This is why tracking every cost matters — without the numbers, you cannot tell whether you’re actually making money.
What records to keep
HMRC requires records even if you’re under £1,000 and don’t have to register. For eBay sellers, that means per item:
- What you paid and where you bought it
- What it sold for on eBay, and the date
- eBay fees charged
- Postage and packaging cost
Plus shared costs: petrol to sourcing locations, entry fees at car boots, packaging supplies bought in bulk.
Keep everything for at least 5 years after the 31 January Self-Assessment deadline of the relevant tax year.
For the full breakdown of HMRC record-keeping requirements, self-assessment registration, and all the edge cases, read our deep dive: When Does HMRC Say You’re a Business? The £1,000 Trading Allowance for UK Resellers.
Track your eBay sales properly with FlipperHelper
FlipperHelper was built for exactly this. You buy at a car boot, photograph it on your phone, log the cost. You sell it on eBay, record the sale. At the end of the tax year, you export everything to Google Sheets and hand it to your accountant. Done.
What it does that matters for eBay sellers:
- Track every sale with photo and price — cost, sale price, platform, dates, all in one place
- Export to Google Sheets — CSV format, the thing your accountant actually wants
- Works offline — log purchases at car boot sales at 7am without signal, syncs later
- Multi-currency — if you source from France or Europe and sell in GBP, it handles the conversion
- All from your phone — no laptop, no spreadsheet wrestling at the kitchen table
- Free on the App Store
When HMRC asks “how much did you make on eBay?” you want a real number, not a guess. FlipperHelper gives you that number.
FAQ
Do I have to pay tax on eBay sales in the UK?
If you’re selling your own personal possessions, almost certainly not — HMRC says so explicitly. If you’re buying items to resell for profit and your gross sales exceed £1,000 in a tax year, you need to register for Self-Assessment and may owe Income Tax on your profit.
Does eBay report my sales to HMRC?
Yes. Since January 2024, eBay and other UK digital platforms are required to report seller activity to HMRC. This means HMRC can cross-check your tax return against what eBay says you received.
Is the £1,000 threshold about profit or total sales?
Total sales (gross). Before eBay fees, before postage, before stock cost. HMRC’s own words: “Gross income means the total amount you would put on your tax return before any allowances or expenses are taken off.”
Do I pay tax on my eBay side hustle if I have a full-time job?
If your gross eBay trading income is over £1,000, yes — you register for Self-Assessment and report it. Your Personal Allowance is likely already used by your salary, so eBay profit is taxed at your marginal rate (20% for most people).
Can I deduct eBay fees from my taxable income?
Yes, if you choose to claim actual expenses instead of the £1,000 trading allowance. You can deduct eBay fees, postage, packaging, stock cost, and other legitimate business expenses. You pick whichever method — allowance or expenses — gives you the lower taxable profit.
What records do I need to keep as an eBay seller?
Per item: cost price, sale price, eBay fees, postage, packaging. Plus shared costs like transport to sourcing locations. Keep everything for at least 5 years. A tracking app or spreadsheet with CSV export works — FlipperHelper does this and is free.
Sources
- HMRC — Check if you need to tell HMRC about your income from online platforms. Published 28 November 2024, last updated 13 February 2025. gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms
- HMRC — Tax-free allowances on property and trading income. Published 7 April 2017. gov.uk/guidance/tax-free-allowances-on-property-and-trading-income
- HMRC — Income Tax rates and Personal Allowances. 2026–27 tax year. gov.uk/income-tax-rates
This post explains what HMRC’s published guidance says, as of April 2026. It is not tax advice. For edge cases, speak to an accountant.