Second-hand clothing is a serious business. In the UK, resold fashion is estimated to be worth over £7 billion – and it doesn’t seem to be going anywhere.
Sites like eBay, Depop, and Vinted are common picks for those looking to buy or sell pre-loved items, from vintage designer jackets to old lamps.
But what tax do you need to pay on the income you get from flogging your items?
In 2024, the government called out “misinformation… about a new tax for people selling their unwanted clothes or children’s toys, etc. online. This is not right”.
All that happened was that they changed how sites like eBay and Vinted have to report sellers’ incomes to HMRC.
The reporting changes mean these apps and websites have to let you know that your information has been shared with the tax service if you sell over 30 items or make more than about £1,700 from your sales.
That disclosure doesn’t mean you definitely have to pay tax. The rules on seller taxes themselves haven’t changed.
Most people who are selling unwanted clothes, toys, kitchen tools, and more do NOT have to pay tax on the money they make from doing so in the UK.
Per Vinted, “if the money you make on Vinted over a year is less than what you paid for the items, you pay no tax”.
- Buy or make items with the sole purpose of reselling them,
- AND earn more than £1,000 a year from doing so,
you need to register with HRMC. That might not mean you’ll definitely be taxed (though your income might be over £1,000, your profit could be below that, for instance) – but you may still need to report it.
You might also be taxed if you sell an item for £6,000 or more, AND you profited from it (made more than you paid). Still, you might be able to offset some of that profit with your tax-free capital gains allowance (£3,000 a year).
Usually, due to new reporting laws, apps will tell you when you need to fill in your information as a seller report. If you need to pay taxes, it is up to you to submit, report, and pay your HRMC self-assessment in time.
If you need to register for self-assessment for the tax year 2025/26 for the first time, you must do so by October 5.
