Do I have to pay tax on selling my second-hand clothes?

If you're selling clothes that you already own (i.e., second-hand clothes) occasionally and without making a profit, you generally don't need to pay tax. For example: Selling a few items here and there, perhaps on platforms like eBay, Depop, or Vinted, to declutter your home.

Do I have to pay tax on selling my old clothes?

As with any other kind of business, online second-hand clothing retailers are generally required to pay taxes on their income. This applies whether you have your own website or sell through other platforms such as Etsy, eBay, Vinted and Depop.

Is it illegal to sell second-hand clothes?

Reselling is not illegal, but there are certain rules and laws you have to follow. You can't resell everything. Selling certain items is illegal. If your reselling income exceeds a certain limit, you must register as a business.

Do you pay VAT on selling second-hand clothes?

If a business buys and sells second-hand goods, they can use one of the second-hand margin schemes so that VAT is only due on the profit margin, not the full selling price. When using a second-hand scheme there are a number of points that you should remember.

Do I need to pay tax on side hustle?

Do I need to pay tax on my side-hustle income? Yes, if your side-hustle is run in such a way as to amount to a trading activity and that you make a profit above your available tax allowances. A side-hustle will be classed as a trading activity from a legal perspective if any of the nine 'badges of trade' are evident.

At what point do I have to pay taxes on my online sales?

How much personal stuff can you sell before paying taxes?

Personal Allowance: In the UK, the personal allowance is £12,570 meaning you can earn up to this amount across all your income sources without paying tax.

How much can I earn without declaring to HMRC?

Currently, you need to file a self-assessment tax return if you earn over £1,000 in total from any side hustles such as trading goods, dog walking or gardening on the side, driving a taxi, or creating online content. But, in future, you'll be able to earn more before having to file a tax return.

What clothing is exempt from VAT?

Children's clothingGenerally, children's clothing is zero-rated for VAT, but certain conditions must be satisfied for the zero-rate to apply. If not, the clothing is usually standard-rated.

Can you make a business selling second-hand clothes?

You can run a used clothing company online, attempt a flea market, or rent a booth at a swap meet. Even before creating a permanent storefront site, the Internet may give you the opportunity to raise money and establish your brand.

Do you pay duty on second-hand goods?

You may still have to pay duties and taxes on second-hand goods – however, if the goods are classified as antiques or original pieces of art, you could benefit from reduced VAT depending on the national regulations and if your goods meet the correct criteria.

Do you need a licence to sell clothes?

Good to know.

No, you don't need a specific licence to sell clothes in the UK, unless you plan to sell clothing from a market stall – in which case you'll need to get a valid market stall licence.

How much can I sell on eBay without paying tax?

There's no new 'side hustle tax'!

In general, selling personal items is not taxed if they're below £6,000 and you're not selling as part of a business.

Can I buy and resell clothes?

Here is all you need to know about this topic. Yes, you can resell goods in the UK legally, as long as you're not trading restricted goods. However, as a reseller, there are some laws and regulations you need to follow if you wish to run a legitimate shop.

How to sell secondhand clothes successfully?

Is it illegal to resell branded clothes?

No, reselling is not illegal.

Can I sell my second-hand clothes on Amazon?

Ensure to provide all the correct details including sizes, describe the category or segment of the clothes and indicate whether they are new, used or like-new clothes (note that you cannot sell used clothes on Amazon).

Are second-hand clothes VAT exempt?

Eligible acquisition of second-hand goods

Purchasing goods from a private individual or an unregistered business which is exempt from VAT, such as a casual seller or trade-in customer. Purchasing goods from a business who are themselves selling through a VAT margin scheme.

Who qualifies for VAT exemption?

VAT law states that you must be 'chronically sick or disabled' to qualify for VAT relief. A person is 'chronically sick or disabled' if they either: have a physical or mental impairment that has a long-term and severe effect on their ability to carry out everyday activities.

How much is VAT on clothes?

Standard VAT rate (20%)

This indirect tax is calculated by adding 20% to the price of the goods or services. Examples of items subject to the standard VAT rate include electronics, clothing (excluding children's clothing), and most professional services.

How to avoid tax self-employed?

Will HMRC know if I don't declare income?

Regardless of the reasons for failing to declare income, HMRC has extensive means to uncover undeclared and under reported income. Their methods have become increasingly sophisticated in recent years, leaving no stone unturned in their search.

Do I need to tell HMRC about side hustle?

It's your responsibility to tell HMRC about money you make on the side, not your main employer's. Income from side hustles isn't included on your payslip. If you don't tell HMRC about those extra earnings you might be given a penalty.

What can you sell without paying taxes?

What About Selling Personal Items? If you're selling personal items occasionally, such as clothes, books, or furniture you no longer need, you generally don't need to pay tax on the money you make. This is only true if the items were used and you're not regularly purchasing items specifically to resell.

How much can I earn as a side hustle before tax?

Anyone generating more than £1,000 from their side hustle should check their tax obligations using HMRC 's new easy-to-use guide at taxhelpforhustles.campaign.gov.uk.

How much tax will I pay if I sell?

If this amount is within the basic Income Tax band, you'll pay 18% on your gains made from 6 April 2025 (or 32% on carried interest). For any amount above the basic Income Tax band, you'll pay 24% on gains made from 6 April 2025 (or 32% on carried interest).