Worked example
Jade buys clothes at car boot sales and charity shops, steams and photographs them, and resells them on Vinted most evenings. She also works part-time on a £28,000 salary. In the 2026 calendar year she sells 200 items for £6,000. Stock, fees, postage and packaging cost her £2,500.
| Items sold | 200 (over 30 — reported) |
| Sales | £6,000.00 |
| Profit claiming real costs (£6,000 − £2,500) | £3,500.00 |
| Profit using the allowance (£6,000 − £1,000) | £5,000.00 |
| Taxable profit (real costs win) | £3,500.00 |
|---|---|
| Income tax at 20% (salary already uses her allowance) | £700.00 |
| Class 4 NI (profit under £12,570) | £0.00 |
Jade is buying to resell for profit and doing it regularly, so she is trading. Her sales are over £1,000, so she needs to register for Self Assessment and declare £3,500 of profit. Keeping receipts for her stock is what makes the difference between paying tax on £3,500 and on £5,000.
If Jade had instead sold 25 of her own old clothes for £400, Vinted would not report her and there would be no tax to think about.
How it works, in plain English
Two separate questions often get mixed up: will the platform tell HMRC about me? and do I owe any tax? The answer to the first does not decide the second.
Platform reporting is not a tax
Since 2024, sites such as Vinted, eBay, Depop, Etsy and Airbnb send HMRC a yearly summary for each seller who makes 30 or more sales, or receives about £1,700 (€2,000) or more, in a calendar year. You get a copy too. It is simply information — there is no new tax and no automatic bill. HMRC may use it to check that people who are trading have registered.
Decluttering versus trading
Selling your own unwanted possessions — usually for less than you paid — is not trading, and there is no income tax on it however many items you sell. (Capital Gains Tax only becomes possible on a single item sold for more than £6,000, which is rare for clothes and household bits.)
It becomes a business when the "badges of trade" point that way: buying things in order to sell them, making or improving items, selling the same sort of thing repeatedly, and pricing to make a profit. The more boxes you tick, the more likely HMRC would see it as trading.
The £1,000 trading allowance
If you are trading, the first £1,000 of sales (not profit) each tax year is covered by the trading allowance. Under that, you do not need to register or report it. Above it, you register for Self Assessment and choose either to deduct your real costs or a flat £1,000 — whichever gives the smaller profit. Resellers with stock costs usually do better claiming real costs. Note the allowance works on the tax year (6 April to 5 April), while platforms report by calendar year.
Frequently asked questions
Does Vinted report me to HMRC?
Only if you make 30 or more sales, or receive around £1,700 (€2,000) or more, in a calendar year. Even then, being reported does not mean you owe tax — it depends on whether you are trading or just selling your own things.
Do I pay tax on selling my old clothes?
Normally no. Selling personal belongings you no longer want is not trading, so there is no income tax, even if you pass the platform reporting threshold. Keep a rough note of what you sold in case HMRC ever asks.
I buy things to resell. When do I need to register for Self Assessment?
Once your trading sales go over £1,000 in a tax year. Register by 5 October after the end of that tax year — so by 5 October 2027 for income earned in 2026/27.
Should I use the trading allowance or claim my costs?
Whichever leaves the lower profit. If your stock, fees and postage come to more than £1,000, claiming real costs wins. The calculator above compares both. You cannot use both for the same business.
What if HMRC writes to me after a platform report?
Reply honestly. If you were only decluttering, explain that. If you were trading over £1,000 and did not register, you can tell HMRC and put it right — acting before they chase you usually means lower penalties.
Estimates only, not tax advice. These figures are a guide based on the information you enter and the 2026/27 rules. Your own position can differ — check GOV.UK or an accountant before relying on them.
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