Reseller Tax Guide UK: Vinted, eBay, Depop, Whatnot and marketplace selling
Reselling tax is not just a question of which app you use. The important question is whether you are simply clearing personal possessions or carrying on a trading activity by buying, sourcing, preparing and selling items for profit. This guide brings together the practical record keeping, expense categories, calculator examples and related UK Tax Toolbox guides that marketplace sellers need before Self Assessment becomes stressful.
The starting point
Personal clear-out or trading activity?
A person selling old clothes, spare trainers, used electronics or duplicate cards from their own collection is in a different position from someone buying stock to resell. HMRC usually looks at the facts: intention, repetition, organisation, profit motive, how items were sourced and whether the activity is run in a business-like way. There is no single magic number of listings that answers the question for every seller.
The line can move over time. Many resellers start with a wardrobe clear-out, then notice demand, begin buying bundles, research sold prices, photograph stock, use keywords, package orders and reinvest sales into more inventory. Once you start sourcing items specifically to sell for profit, your records should become more detailed. The earlier you separate personal items from resale stock, the easier it is to explain the activity later.
Marketplaces can make selling feel informal, but platform dashboards do not decide your tax position. They may show useful information, but you still need to understand gross sales, fees, refunds, postage, stock costs and profit. Recording only the final bank deposit can hide important deductions and make your estimate less reliable.
Gross sales and allowance
The £1,000 trading allowance is based on gross trading income
Resellers often focus on profit because margins can be tight. For the trading allowance, however, the key figure is gross trading income before expenses. Gross income can include item prices, postage charged to buyers, live auction payments, bundle payments, card break entries and other trading receipts before platform fees, postage labels, stock costs or packaging are deducted.
If gross trading income is £1,000 or less in a tax year, you may not need to report it in many straightforward cases. If it is above £1,000, you may need to tell HMRC and decide whether to claim actual allowable expenses or use the trading allowance against that income. You generally do not claim both for the same income.
Actual expenses are often important for resellers because stock, postage, packaging, platform fees, payment fees, storage and preparation costs can be significant. A seller with £6,000 of sales and £4,000 of costs will usually want a more detailed profit estimate than a seller with almost no expenses.
What to collect before using a calculator
- Gross sale price before platform fees or payment deductions
- Postage charged to the buyer and postage actually paid
- Platform fees, payment fees, promoted listing costs and refunds
- Stock purchase cost, source, date bought and date sold
- Packaging materials, labels, sleeves, boxes, tape and storage costs
- Notes showing whether an item was personal property or stock bought to resell
- PAYE salary and other income if reselling is a side hustle
Platform patterns
Different marketplaces create different record-keeping risks
The same tax principles can apply across Vinted, eBay, Depop, Whatnot, TikTok Live, Facebook Marketplace, Etsy and specialist card marketplaces, but the records do not always look the same. The safest approach is to bring the figures into one spreadsheet or accounting tool instead of checking each platform in isolation.
Vinted, Depop and fashion resale
The main issue is separating wardrobe clear-outs from stock bought or sourced to resell. If you sell clothes you previously bought for yourself, the facts may look different from buying bundles, charity shop finds, outlet items or branded stock with the aim of making a margin.
eBay, Facebook Marketplace and mixed items
Mixed marketplaces often include both personal possessions and trading stock. Keep notes showing which items came from your own home and which were bought for resale. This becomes especially important when sales volume grows across several apps.
Whatnot, TikTok Live and card selling
Live sellers can create many transactions quickly. Track gross sales, buyer-paid postage, platform deductions, card sleeves, top loaders, stock purchases, grading fees and refunds so the final profit estimate is not guesswork.
Vintage, collectibles and high-value stock
Rare trainers, sealed trading cards, vintage clothing, watches, electronics and collectibles can involve higher values and uneven margins. Evidence matters: keep purchase records, platform reports, authentication costs and sale records together.
Common mistakes
The errors that make reseller tax estimates unreliable
The most common mistake is mixing personal clear-outs and trading stock without notes. If the same account contains old household items, personal clothing, bought-to-resell bundles and live auction stock, a single payout total will not explain the real picture. Simple item-level notes can prevent a lot of confusion.
Another mistake is ignoring buyer-paid postage. If a buyer pays you for postage, that amount can be part of income, while the postage label or courier charge may be a cost. Recording only the difference can make your gross income and expenses unclear.
Sellers also forget small costs because each purchase feels minor: labels, tape, mailing bags, tissue paper, sleeves, top loaders, boxes, cleaning products, steamers, storage tubs and promoted listing fees. These costs can add up, especially when margins are narrow. Keep receipts or platform reports while they are easy to find.
Calculators
Estimate reseller tax with the right tool
Reseller Tax Calculator
Estimate tax on marketplace profit after stock, postage, packaging, platform fees and other selling costs.
Vinted Tax Calculator
Useful when your main selling channel is Vinted and you want a focused estimate for clothing resale activity.
eBay Reseller Tax Calculator
Use for eBay resale income, buyer-paid postage, selling fees, promoted listings and payment deductions.
Depop Tax Calculator
For Depop sellers tracking fashion stock, platform fees, postage labels, packaging and resale margins.
Side Hustle Tax Calculator
Best when resale profit sits alongside PAYE salary, freelance income or another side income stream.
Self Assessment Payment Calculator
Use after estimating profit to think about the bill timing, balancing payments and possible January cash flow.
Reseller tax FAQs
Do resellers pay tax in the UK?
Resellers may need to pay tax if the activity is trading and the income needs to be reported. Selling a few personal possessions is different from buying or sourcing items with the intention of reselling them for profit.
Is marketplace tax based on sales or profit?
The trading allowance test looks at gross trading income before expenses. If the activity is reportable, Income Tax and National Insurance estimates usually focus on profit after allowable expenses or after using the trading allowance.
Does the £1,000 trading allowance apply to Vinted and eBay sellers?
It can apply to gross trading income from marketplace selling, but it is based on sales before costs. A seller with sales above £1,000 may need to check whether the income should be reported even if profit is much lower.
Can I claim stock, postage and packaging?
Stock bought for resale, postage, packaging and platform fees may be allowable expenses where they are genuinely connected to a trading activity and supported by records. Personal spending should be kept separate.
What if I sell personal items and resale stock on the same account?
Keep a simple note for each item showing whether it was a personal possession or stock bought to resell. Mixed accounts can become confusing if you only rely on bank deposits or platform totals.
Which calculator should marketplace sellers use?
Use the Reseller Tax Calculator for general resale profit. Use the Vinted, eBay or Depop calculator pages for channel-specific examples, and use the Side Hustle Tax Calculator if you also have PAYE income.
Start with a clean profit estimate
Use gross sales from your trading activity, then add stock, postage, packaging, platform fees and other genuine selling costs. If you also have a PAYE job, use the side hustle calculator afterwards to understand the wider tax picture.