Do I pay tax on selling personal items?

Generally, you don't pay tax on selling your own used personal items at a loss or for less than you paid, as it's seen as clearing out, not trading; however, you may owe Capital Gains Tax (CGT) if you make a profit on a single item worth over £6,000, or Income Tax if you regularly buy items to resell for profit (a "trade"), exceeding the £1,000 trading allowance. The key is your intention: selling old belongings is usually tax-free, while buying to sell for profit is treated as income.

How much can I earn on Vinted without paying tax?

You can generally sell on Vinted without paying tax if you're just clearing out personal items for less than you paid, but if you're buying to resell (trading), you can earn up to £1,000 in profit/income tax-free under the UK's Trading Allowance before you need to tell HMRC. This £1,000 limit applies to your total income across all selling platforms, not just Vinted. Above this, you must register for Self Assessment, though you only pay tax on profits above the allowance. 

How much personal items can I sell on eBay before tax?

If you're selling second-hand personal items of significant worth on eBay, you should be aware of your liability to pay CGT. Any personal possessions that you sell (with the exception of your car – check HMRC for more details on this process) that are worth more than £6,000, you'll need to pay Capital Gains Tax.

Can I sell things I make as a hobby in the UK?

Starting a side business based on a hobby is a good way to test out whether the entrepreneurial life is for you, and whether your hobby is profitable. In very general terms, your hobby is a business if you sell your products or services, and the income that you receive from doing so is more than £1,000 in a tax year.

What happens if I sell more than 30 items on Vinted?

If you sell over 30 items or earn £1,700 (approx. €2,000) on Vinted in a year, the platform will share your details (name, address, NI number) with HMRC for the UK, but this doesn't automatically mean you owe tax; it's to identify potential trading businesses, not casual selling of personal items, so you might get a letter asking for clarification, and you'll need to respond if you've been making a profit.

Selling PERSONAL Items - Do I Need to Declare Profit?

What is the HMRC limit on Vinted?

Information must be shared with HMRC by the end of the calendar year that sellers hit the 30 item or £1,700 threshold, according to Vinted.

How much can I sell without paying tax in the UK?

You will need to tell the HMRC if: you sell more than the 'Trading Allowance' of £1,000 (before deducting expenses). sell a personal item for £6,000 or more, in which case you may be liable for Capital Gains Tax.

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

Selling your own used clothes for less than you paid is generally not taxed, but if you buy clothes to resell for profit (treating it as a business), you might need to pay Income Tax on profits above £1,000 and potentially VAT. Recent platform rules require reporting sales over 30 items/£1,700 to HMRC, but this mainly flags potential traders; you're usually fine if decluttering personal items.
 

How to avoid the 60% tax trap in the UK?

To avoid the UK's 60% tax trap (where your £100k+ income causes a rapid loss of your £12,570 personal allowance), the most effective methods involve reducing your adjusted net income below £100,000, primarily through pension contributions (personal or workplace), charitable donations (Gift Aid), salary sacrifice for benefits like company cars, or claiming all allowable employment expenses, all of which effectively give you higher-rate tax relief on the money you redirect.

Do I have to pay tax if I sell personal items?

If you're occasionally selling personal possessions via an online marketplace, perhaps old vinyl records or football programmes on eBay, clothes on Vinted or other unwanted things from your loft or garage at car boot sales, no tax is payable. You're just selling off your personal possessions.

Is Vinted considered a hobby or a business?

business income. Whether you consider your Vinted sales a fun hobby or a serious business doesn't always matter when it comes to taxes. The IRS has specific rules about what makes something a hobby or a business. (TL;DR: If you are trying to generate a profit, it's usually a business, even if you only do it part-time.)

What is the 5000 rule on eBay?

The Reporting Threshold for eBay Sales

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 new side hustle tax?

Despite what online articles are suggesting, there is no new 'side hustle tax'. Instead, from 1 January 2024, new requirements have been introduced relating to the reporting between online platforms and HMRC.

What is the 4 year rule for HMRC?

The HMRC 4-year rule generally means you have four years from the end of the relevant tax year to claim a refund for overpaid tax or for HMRC to issue a discovery assessment for underpaid tax due to a genuine mistake. This limit extends to six years for "careless" errors and 20 years for "deliberate" actions, with longer periods applicable for offshore matters (12 years) or specific non-domicile regimes. The rule applies across most taxes, but timeframes vary depending on the reason for the error.
 

How do millionaires avoid tax in the UK?

FAQs on UK Taxation

Why do the rich pay less tax? The rich often pay less tax due to the use of tax-efficient strategies, such as investing in capital gains assets, maximising pension contributions, and utilizing tax-advantaged accounts like ISAs.

Can you sell items as a hobby?

This is a very popular misconception - the reality is that any online or offline selling activity in which the main motive is to make a profit is deemed by the IRS to be a business - this applies no matter how much you are making in revenue.

Can I sell clothes on Vinted without paying tax?

Selling your personal items on Vinted is generally not taxed. If the money you make on Vinted over a year is less than what you paid for the items, you pay no tax.

Do I have to pay tax on selling my possessions?

If you're just selling unwanted personal belongings from time to time like old toys and clothes, whether it's online or in person, you don't usually need to tell HMRC.

What are common side hustle mistakes to avoid?

5 common side hustle mistakes and how to fix them

• Your audience is too broad. If you're saying “this is for everyone,” it's actually for no one. ...
• You're skipping the quick wins. ...
• You're not setting small challenges. ...
• You're working in isolation. ...
• You're afraid to start small.

What is classed as a side hustle?

Put simply, a side hustle is an extra job that you do outside of your usual job, whether that's full-time or part-time.