Yes, eBay is required to report seller information to HMRC (Her Majesty's Revenue and Customs) in the UK if you meet specific thresholds: 30 or more sales or over £1,707 (approx. €2,000) in earnings in a calendar year, starting from 2024 data reported in January 2025, under new digital sales reporting rules. This reporting doesn't change your existing tax obligations but gives HMRC visibility over online income, so you might still need to pay tax depending on whether you're selling personal items for a loss or running a business, even if you're below the reporting threshold.
Generally, only business sellers trading for profit might need to pay tax. If you're selling unwanted personal possessions, such as used clothes, an old mobile phone or unwanted furniture, it's very unlikely you will have to pay income tax.
HMRC genuinely sends these letters and has more information than you think. It is important to note that the letters are real and are part of HMRC's ongoing efforts to tackle tax evasion and ensure individuals pay the correct amount of tax.
As a platform, eBay is required to issue Form 1099-K to sellers who generated more than a certain threshold. Under updated IRS rules, this threshold has a lowering trend. The mentioned threshold is $5000 for 2024 and $2500 for 2025. It is planned to be reduced to $600 for 2026.
What is the most you can make on eBay without paying taxes?
In the UK, you generally pay tax on eBay profits if your trading income (buying items to resell for profit) exceeds the £1,000 Trading Allowance in a tax year, requiring Self Assessment; however, selling personal, unwanted items for less than you paid for them usually isn't taxable, while significant profits on valuable personal items might fall under Capital Gains Tax, with a £6,000 chattel exemption and a £3,000 annual exempt amount for gains. In the US, IRS rules trigger a 1099-K if you have over $20,000 in gross sales and over 200 transactions in a year, but you're taxed on profits above your expenses, not the gross.
eBay HMRC Guide 2024: What You Need to Know (Tax Details)
What happens if I sell more than 30 items on eBay?
As a UK resident, when you sell over £1,707 or more or complete 30 or more sales transactions within a calendar year, eBay is obliged to report certain personal or business information to HMRC in accordance with the UK digital sales reporting legislation. eBay will notify you when you have crossed these thresholds.
What's Changing. Starting August 27, 2025, items valued at US$500 or above (including shipping fee) for shipping to the United States will require additional seller enablement on eBay. Note: This updates our prior threshold of US$2,500; all other terms remain the same.
If your eBay gross sales add up to more than $20,000 and 200 transactions in a year, eBay will send you a Form 1099-K, which lists the total amount of payments you received throughout the year.
Off-platform requests: A seller asking to communicate or finalize the transaction off eBay is a huge red flag that they're trying to trick you. There's no reason you can't talk and transact exclusively on eBay.
What happens if I don't declare my eBay earnings? If you have not declared your earnings to HMRC you may have to pay both: the undeclared tax and a penalty worth up to double the tax you owe. HMRC can go back 20 years if it suspects you are deliberately evading tax.
Why is HMRC Targeting Online Marketplace Sellers? New rules that came into force in January 2024 require digital platforms to report data about the income earned by their users to HMRC. The first reports were delivered to HMRC by 31 January 2025.
I heard that I don't need to do anything until I'm earning over £3,000? That's not true. If you're earning over £1,000 from side hustles, you'll still need to tell HMRC. At the moment, you tell HMRC by doing a Self Assessment tax return.
Can I sell my personal items on eBay without paying tax?
If you're genuinely selling your own possessions, it's unlikely you will need to declare your earnings and pay tax. If you're buying or making things for the sake of selling them at a profit, then you're likely 'trading' and you might owe tax on what you make.
The short answer is a resounding yes, and the reasons why might surprise you. Despite the competition, eBay continues to be a powerhouse. As of the first quarter of 2025, the platform boasts 134 million active buyers and around 18 million sellers, with nearly 2 billion live listings at any given time.
After a buyer wins an auction or commits to buy an item, we send emails reminding them to pay for the order 24 hours and 48 hours after the listing ended. You can also get in touch with your buyer - opens in new window or tab to remind them.
How many items can you sell on eBay as a beginner?
Went from 10 listing/sold limit as a new seller to 18 listing/sold limit after exhausting the first 10 in about a week and selling one or two items during that first week.
We review your account every month and adjust the limits automatically based on your volume of sales and the Feedback you've received from buyers. We may end any listings that you have created over your existing limit.
The number of active sellers on eBay has been decreasing in recent years. In 2022, eBay had 18 million active sellers, which was a small decrease from the previous year.
Can you get banned from eBay for too many returns?
You're probably going to flagged by the system. eBay does monitor buyers who open too many cases especially within a short period of time. 15 snad returns especially with different sellers can be seen as excessive even if the items were truly snad.
