How much can you sell on eBay before paying tax in the UK?

The short answer: if you're buying things to resell, you can make up to £1,000 in gross sales per tax year under the trading allowance before you need to tell HMRC or pay any tax. Above that, you register for Self Assessment.

The longer answer depends on one question: are you selling your own possessions, or are you trading? The tax treatment is completely different, and mixing them up causes most of the worry.

Selling your own stuff: usually no tax at all

Clearing out your loft, selling your old phone, shifting clothes that don't fit: not taxable, no matter the amount, because you're disposing of personal possessions, not trading. (The rare exception is a single valuable item sold for more than £6,000, where capital gains tax rules can apply.)

HMRC's test is intent. If you bought something to use and later sold it, that's a personal sale. If you bought it in order to sell it on, that's trading, and trading is where the £1,000 line matters.

Trading: the £1,000 allowance

The trading allowance lets you earn up to £1,000 of gross trading income per tax year (6 April to 5 April) with no tax to pay and nothing to report. Gross means total sales received, before deducting what you paid for stock, fees or postage.

Go over £1,000 gross and you must register for Self Assessment. That doesn't mean a big bill: you only pay tax on profit (or income above the allowance, whichever calculation you choose), and only after your overall income crosses your personal allowance. Many small resellers register, file, and pay little or nothing, but filing is not optional once you cross the line.

eBay now reports sellers to HMRC

Since 2024, digital platforms including eBay and Vinted have been required to report seller activity to HMRC once it passes modest thresholds, and the regime tightened again from April 2026. In practice: if you're selling regularly, assume HMRC can see it.

That's not a reason to panic, it's a reason to be organised. The rules didn't change what's taxable; they changed what's visible. Honest records make the whole thing a 20-minute job.

Keep records from day one

The Self Assessment filing threshold is set to rise from £1,000 to £3,000 under Finance Act 2026, which received Royal Assent in March 2026. The exact date it takes effect hasn't been fixed yet, with estimates ranging from the 2027/28 tax year to as late as 2029. The £1,000 trading allowance itself isn't changing, so work to the £1,000 line until the new threshold is actually in force.

If you track your buys and sales in RedGem's outcomes log, you already have the numbers a tax return asks for: money in, money out, net profit per item, by date. One export at year end and you're done.

This article is general information, not tax advice. Rules change and personal circumstances differ, so check GOV.UK or speak to an accountant for your own situation.

• What you paid for each lot, all-in (hammer, premium, VAT, delivery).
• What each item sold for, and the fees and postage on the sale.
• The dates, so you know which tax year everything lands in.
• Mileage to collect stock, packaging costs, and other legitimate expenses.

Quick answers