Do You Pay Tax When You Sell Secondhand in the UK?
Does selling my own old clothes count as taxable income?
Usually not. HMRC draws a clear line between clearing out your own belongings and running a trade. Selling clothes, shoes or homeware you already owned and no longer need is not trading income, so the tax rules for traders do not apply to it — even if a platform reports your sales to HMRC.
The one exception is Capital Gains Tax: if you sell a single personal item (or a set of items) for more than £6,000, you may need to tell HMRC. Individuals also have an annual CGT allowance of £3,000. For ordinary wardrobe clear-outs this never comes up.
What is the £1,000 trading allowance?
If you buy items specifically to resell for profit — charity-shop finds, wholesale bundles, anything sourced as stock — HMRC treats that as trading. The trading allowance lets you earn up to £1,000 of gross trading income per tax year (6 April to 5 April) without telling HMRC or paying tax on it.
Two details catch people out. First, the £1,000 applies to gross income before costs, not profit: £1,200 of sales with £900 of costs is still over the line. Second, it is one allowance across everything combined — £600 on eBay plus £500 on Vinted is £1,100, which is over.
Above £1,000 you must register for Self Assessment (by 5 October after the tax year ends) and file a return by 31 January. You then choose between deducting the £1,000 allowance or deducting your actual expenses — expenses usually win once your costs pass £1,000. Note that Income Tax itself only starts above the £12,570 Personal Allowance.
Vinted reported my sales to HMRC — do I owe tax now?
Not necessarily. Since January 2024, UK platforms including Vinted must collect seller information and send it to HMRC each year for sellers with more than 30 transactions in a calendar year or more than about £1,700 (2,000€) in proceeds. HMRC itself says this is not a new tax and the rules have not changed.
Reporting and taxing are two different things. If you were only selling your own unwanted items, the report changes nothing — you still owe nothing. The report matters only if you were trading above the allowance without declaring it.
How do I stay on the right side of the rules?
Keep it simple: know which side of the line you are on. Clearing out your wardrobe is not trading. Buying stock to flip is trading, and then the £1,000 gross figure is the number to watch — track your sales across every platform in one place, because the allowance is combined.
If you cross £1,000 of trading income, register for Self Assessment and keep receipts for everything: stock, postage, packaging and platform fees. This guide is general information, not tax advice — for your own situation use HMRC’s tools on gov.uk or speak to an accountant.
- Official guidance: gov.uk — “Tax-free allowances on property and trading income”.
- Register: gov.uk — “Register for Self Assessment” (deadline 5 October after the tax year).
Frequently asked questions
Do I pay tax on Vinted sales in the UK?
Only selling your own unwanted items: usually no tax at all. Buying to resell: it is trading, and you must declare it once your gross trading income passes £1,000 in a tax year.
Is the £1,000 trading allowance per platform?
No — it is one £1,000 allowance per tax year across all your trading income combined, including every platform you sell on.
What happens if Vinted reports me to HMRC?
Platforms report sellers with 30+ yearly transactions or ~£1,700+ proceeds. This is reporting, not a tax bill — HMRC says it is not a new tax and the rules are unchanged.
Do I pay tax on profit or total sales?
The £1,000 threshold is on gross income (total sales before costs). Once registered, you pay tax on profit — with the choice of the £1,000 allowance or your actual expenses.