The trading allowance comes up whenever people ask whether selling online means telling HMRC. This guide sets out what GOV.UK says about it, and where selling your own unwanted things fits. It sticks to GOV.UK's wording. Whether your own selling counts as trading is something to check against that guidance, or with HMRC or an accountant.
What the trading allowance is
GOV.UK describes it as "a tax exemption of up to £1,000 a year for individuals with trading income". It covers trading income from:
- self-employment
- casual services, such as babysitting or gardening
- hiring out personal equipment, such as power tools
Its guidance on online platforms adds that income from selling goods, providing services and online content all count together. If your total is more than the £1,000 trading allowance for the tax year, you need to tell HMRC.
If you're under £1,000
GOV.UK says that with gross trading income of £1,000 or less you generally don't need to tell HMRC, unless you can't use the allowance or you have to register for Self Assessment for another reason.
If you're over £1,000
GOV.UK says you must register for Self Assessment by 5 October after the end of the tax year (which runs 6 April to 5 April). On your return you can then either:
- deduct the £1,000 allowance from your gross trading income, or
- claim your actual allowable expenses
You can't do both. If you claim the allowance, GOV.UK says you can't deduct other expenses or allowances. Allowable expenses are explained in expenses if you're self-employed. For resellers that includes a reselling goods section.
Where personal possessions fit
GOV.UK treats selling your own things differently from trading:
"If you're selling personal possessions you probably do not have to pay Income Tax on these."
"If you sell an item for more than £6,000, you may need to pay Capital Gains Tax."
It says you're probably trading if you sell goods that you:
- bought to resell at a profit, or
- made, including hobby projects
Many people do a bit of both: a wardrobe clear-out and some items bought to resell. GOV.UK's online checker asks the questions that help sort out which rules apply.
Who can't use it
GOV.UK lists exclusions. For example, the allowance doesn't apply to trading income from a partnership, or to income from your own or a connected person's company, or from your employer. The full list is on tax-free allowances on property and trading income.
Worked example (round numbers)
Sam makes and sells candles on Etsy and also sells some items bought at car boot sales on eBay. Over the 2025–26 tax year:
| Platform | What | Sales total |
|---|---|---|
| Etsy | Candles Sam made | £900 |
| eBay | Items bought to resell | £400 |
| Total | £1,300 |
GOV.UK's "probably trading" description mentions goods you made and goods bought to resell. Together Sam's sales come to more than £1,000. Whether Sam is trading, and what follows, is for Sam to check against GOV.UK's guidance or HMRC's checker, or with an accountant. The useful first step is the one in the table: a total across every platform for the tax year.
FAQ
Is the £1,000 per platform? No. GOV.UK says income from goods, services and online content counts together against the allowance.
Is it based on sales or profit? GOV.UK says the allowance is deducted from your gross trading income, and that "Gross income means the total amount you would put on your tax return before any allowances or expenses are taken off."
Does a platform reporting me mean I'm over the allowance? No. Platform reporting has its own rules. See our guide Do Vinted and eBay report you to HMRC?
Your total across platforms
sellertotals adds up sales from Vinted, eBay, Etsy, Depop and others. You get totals per platform for each calendar year and a combined total for each tax year. CSV exports are read in your browser for free. Screenshots or PDFs use AI, and your first one is free. It doesn't decide whether your selling is trading.
This isn't tax advice. Check GOV.UK's guidance on the trading allowance or an accountant for your situation, and check the figures before you submit anything.