Quick answer
Selling your own unwanted possessions does not automatically create a tax bill. HMRC says you are probably trading when you buy or make goods intending to sell them for a profit. If your total gross trading income is more than the £1,000 trading allowance for the tax year, you generally need to tell HMRC. Gross income is the amount received before expenses, not your profit.
This page is general information, not personal tax advice.
Selling old possessions is different from trading
HMRC distinguishes occasional disposal of personal possessions from activity that looks like a trade. A key example of trading is buying items specifically intending to resell them for more. Regular sourcing from charity shops, car boot sales or online marketplaces for profit can therefore fall into trading even when you also sell your own clothes.
The £1,000 trading allowance
HMRC states that individuals can get up to £1,000 a tax year in trading income allowance. If annual gross trading income is £1,000 or less, you may not need to tell HMRC, subject to exceptions. If gross trading income is over £1,000, use HMRC’s checker and guidance to determine what you need to report.
Do not confuse gross income with profit: gross income is before costs and expenses.
Platform reporting is not a new tax
Digital platforms may have to collect and report seller information to HMRC under reporting rules introduced from 1 January 2024. HMRC has explicitly said this did not create a new tax on people selling unwanted items. A platform reporting your data does not by itself prove that tax is due.
Keep records from the first purchase
If you are deliberately reselling for profit, keep records of purchase price, postage, cleaning, repairs, packaging, sale price, marketplace costs and dates. Good records help you work out your actual trading result and explain the figures if you later need to complete Self Assessment.
Resell AutoBot’s Resales and True Profit workflow can help you record commercial outcomes, but it is not accounting software and does not file tax returns.
Tax year vs calendar year
The UK tax year runs from 6 April to 5 April. HMRC notes that some online platforms display totals for the calendar year instead, so you may need to work out the figures for the correct tax-year period before using HMRC’s checker.
Official HMRC references
- Check if you need to tell HMRC about online-platform income
- Trading allowance guidance
- Selling goods or services on a digital platform
- HMRC additional income checker
Official guidance checked 4 September 2026.
Related Vinted resources
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