Do you pay tax on what you sell on eBay?
If you're clearing out your own things on eBay, old gadgets, clothes, bits from the garage, you almost certainly owe nothing, no matter how much it adds up to. It's a different story if you're buying stock to resell or flipping for profit. eBay also throws up one wrinkle the clothes apps don't, around the odd valuable item. Here's the whole picture, plainly.
Clearing out, or actually trading?
What decides whether you owe income tax isn't how much you make, it's why you're selling. Selling your own used possessions, things you originally bought to use, isn't taxed. That holds however much it comes to. HMRC's own line is that you're fine "no matter how many items you sell."
You're trading if you're buying or making things mainly to sell them on at a profit. Sourcing stock from car boots and charity shops to flip, buying job lots, running an eBay shop, making things to order. HMRC weighs up whether you're in it for profit, how regularly and methodically you sell, and whether you bought the items to use or to resell. Selling your old PlayStation isn't trading. Buying ten of them to resell is.
eBay reports your sales to HMRC too: the 30-items rule
Since January 2024, eBay, like every big platform, has had to send HMRC a yearly report on its larger sellers. You're included if, over a calendar year, you make 30 or more sales, or take around £1,700 (about €2,000) or more.
If you're reselling or flipping: the trading side
If you are trading, the first £1,000 of sales each tax year is covered by the trading allowance, so there's nothing to do below that. Once you go over £1,000, you'll usually need to:
- register for Self Assessment, by 5 October after the tax year you started, and
- file your return and pay any tax by the 31 January after that.
You're taxed on profit, not turnover. So you take what you sold and subtract what it cost you to buy and sell it: the stock itself, eBay's fees, postage and packaging. (Or you subtract the flat £1,000 allowance instead, if that comes to more than your real costs.) Whatever's left is taxed at your normal rate. The checker estimates the figure for you.
The valuable-item wrinkle: Capital Gains Tax over £6,000
This one matters more on eBay than on the clothes apps, because eBay is where collectibles and the odd treasure get sold. If you sell a single personal item, or a matching set, for more than £6,000, say a rare watch, an antique, or a collectible, that can bring in Capital Gains Tax, which is separate from income tax. Most everyday sales are nowhere near £6,000, so this won't touch a normal clear-out.
The "£3,000 change" you might have heard about
You may have seen talk of a £3,000 threshold. It's real but widely misreported. The plan is to raise the point where you have to fill in a full Self Assessment return, from £1,000 to £3,000 of gross trading income, with a simpler online way to pay any tax instead. It has no start date yet, so it doesn't apply today. And it only changes how you report, not how much tax you owe. It does not make £3,000 of profit tax-free.
Clear-outer or trader? Find out for sure.
Soldly asks a few plain questions and tells you straight: are you trading, do you need to register, and roughly what (if anything) you'd owe. Two minutes, no sign-up, nothing saved.
Check where I stand →Common questions
Do I have to pay tax on selling things on eBay?
Not if you're selling your own used belongings. That isn't taxed, however many items you sell. You only pay income tax if you're trading, meaning buying or making things to sell on for profit and going over the £1,000 trading allowance. A single item sold for over £6,000 is the one separate exception (Capital Gains Tax).
Do I have to declare my eBay sales to HMRC?
Only if you're trading and your sales go over £1,000 in the tax year. Selling your own possessions doesn't need declaring. eBay separately reports larger sellers (30 or more sales, or about £1,700 a year) to HMRC, but that report isn't the same as you owing tax.
How much can I sell on eBay before paying tax?
If it's your own stuff, there's no limit, because it isn't taxed. If you're reselling or flipping, the first £1,000 of sales a year is covered by the trading allowance, and above that you're taxed on your profit.
Can I deduct eBay fees from my tax?
Yes, if you're trading. Your taxable profit is your sales minus your costs, and eBay's selling fees, postage and packaging all count as costs, along with what you paid for the stock. Or you can use the flat £1,000 trading allowance instead, whichever is bigger.
I sold something valuable, like a collectible. Do I owe tax?
If a single item or set sold for more than £6,000, you may have Capital Gains Tax to consider on the gain. Below £6,000, a one-off sale of a personal possession is generally fine.