UK Selling Online Tax Calculator
Estimate tax for UK sole traders and side sellers using eBay, Vinted, Etsy, Depop, Facebook Marketplace and other online platforms. The calculator helps separate a personal clear-out from trading, compares actual costs with the GBP 1,000 trading allowance, detects an actual trading loss, and estimates Income Tax and Class 4 National Insurance.
Estimate online selling tax
Use tax-year figures for income tax, and calendar-year counts for the platform reporting warning.
This is a guide only. HMRC looks at facts, not the platform name.
Total paid by buyers before fees and costs.
For the platform reporting warning.
Salary, pension or other income before this trade.
For CGT warning on personal possessions over GBP 6,000.
Need to include PAYE tax already deducted, pensions, Gift Aid or payments already made?Use the full Self-Employed Tax Calculator.
Trading allowance
GBP 1,000
Can cover small trading income or replace actual expenses.
Platform reporting
30 / EUR 2k
Some low-activity sellers are excluded from platform reports.
Self-employed NI
6% / 2%
Class 4 NI can apply when trading profits exceed the main threshold.
Is selling online taxable?
Selling a jacket you no longer wear is not the same as running a shop from your spare room. The tax question is not whether you used eBay, Vinted, Etsy or Depop. It is whether the activity is trading, and whether there is taxable profit after the rules and allowances are applied.
There is not a new side-hustle tax. The practical change is that online platforms may collect and report more seller information to HMRC. That can make undeclared income easier to spot, but it does not turn every wardrobe clear-out into taxable trading income.
HMRC looks at the facts. Buying stock to resell, making items for sale, listing regularly, improving items before selling them, or clearly trying to make a profit can all point towards trading. A one-off clear-out before moving flat, decluttering after a camping trip, or selling old children's clothes is usually a very different situation.
This calculator therefore starts with the type of selling. If you choose personal clear-out, it gives a tax warning rather than pretending every pound is taxable trading income. If you choose trading or mixed/unsure, it estimates the tax as if the activity is self-employed trading.
| Situation | Likely treatment |
|---|---|
| Selling old personal items | Often not trading income |
| Buying stock to resell | More likely trading |
| Making items for sale | Usually trading if profit-seeking |
| Valuable personal item | May need CGT check if sold over GBP 6,000 |
How this selling online tax calculator works
Inputs used
- Tax year, region and other taxable income, because online selling profit stacks on top of other income.
- Selling type: personal clear-out, bought/made to resell, or mixed/unsure.
- Gross sales income and sales count.
- Cost of goods sold, platform fees, postage, packaging and other selling costs.
- Expense method: actual costs, GBP 1,000 trading allowance, or whichever gives the lower taxable trading profit.
- Largest personal item sold, for a capital gains warning on valuable personal possessions.
Calculation method
- If the activity is treated as personal clear-out, show a reporting warning instead of a trading tax estimate.
- For trading or mixed activity, calculate actual profit as sales income minus selling costs.
- Calculate the trading allowance method as sales income minus GBP 1,000, with no separate expense deduction.
- Choose the lower taxable profit if the user selects the automatic method.
- Calculate extra Income Tax by adding trading profit on top of other taxable income.
- Calculate Class 4 National Insurance on the selected trading profit. If actual allowable costs exceed sales, identify the current-year trading loss separately.
Assumptions
- The calculator estimates sole-trader treatment for online selling. It does not decide employment status, partnership status or limited company treatment.
- The trading allowance is treated as GBP 1,000 of gross trading income across all trading activities, not a separate GBP 1,000 allowance for each platform or account. If you use it, you cannot also deduct actual selling costs for that trade.
- Class 2 National Insurance is shown as a credit warning only. Mandatory Class 2 payments were abolished from 2024/25 for most self-employed people, but profits above the small profits threshold can still protect entitlement.
- Platform reporting is not a tax charge. It is a data-reporting rule that can make undeclared selling easier for HMRC to identify, and it is separate from whether tax is actually due.
- The platform-reporting note uses the sales-count test only. The second test is set in euros, so the calculator does not pretend that a fixed GBP amount is an exact conversion.
What this does not cover
- It does not decide whether your selling is definitely a trade. Check HMRC badges of trade guidance or get advice if unsure.
- It detects when actual costs exceed sales but does not choose or apply loss relief. HMRC HS227 explains the available claims. The trading allowance cannot create a loss.
- It does not estimate payments on account because this short form does not collect PAYE tax already deducted or payments already made. Use the Self-Employed Tax Calculator for a fuller tax-position estimate.
- It does not calculate VAT registration, import duty, company tax, payroll, Making Tax Digital filing duties or platform-specific fee rules. Use the VAT Calculator, UK Import Tax Calculator, or Self-Employed Tax Calculator for adjacent checks.
- It does not calculate Capital Gains Tax. If you sell a valuable personal possession for more than GBP 6,000, check the Capital Gains Tax Calculator when that page is complete, or GOV.UK guidance.
Worked example: selling through eBay and Vinted
Imagine you buy used outdoor gear, tidy it up, photograph it properly and sell it online. In the tax year you take GBP 6,000 from buyers. The items cost GBP 2,200, platform and payment fees are GBP 550, postage and packaging are GBP 450, and other selling costs are GBP 150. Actual profit is GBP 2,650.
The trading allowance method would deduct GBP 1,000 from the GBP 6,000 income, leaving GBP 5,000 taxable. In that case, actual expenses are better because they reduce taxable profit further. If you had only GBP 200 of costs, the trading allowance might be better.
The platform may report seller data, especially if the activity is regular and above the reporting exclusion. That does not mean every seller owes tax, but it does mean your records need to match reality.
Records worth keeping
Keep platform statements, order exports, payment processor reports, postage receipts, packaging receipts, stock purchase invoices and refunds. Screenshots are better than memory, especially if an app changes its export format later.
Separate personal clear-out sales from trading stock. A spreadsheet with columns for item, purchase cost, sale proceeds, platform fee, postage and date is enough for many small sellers.
Useful cost records can include eBay, Etsy or payment fees, postage labels, courier costs, boxes, tape, storage, promoted listing fees and the cost of goods bought for resale. If you use the trading allowance, those costs still help you compare whether actual expenses would have been better.
Sometimes the numbers go the other way and allowable costs are higher than sales. That can create a trading loss, so the calculator flags it instead of quietly showing a zero profit. It does not automatically set the loss against your salary or another year: HMRC provides several forms of loss relief, and the right claim depends on your circumstances. The trading allowance is an alternative deduction and cannot create a loss.
Other checks if selling grows
Platform reports are not tax bills
For goods sellers, details are not reported only where both conditions are met: fewer than 30 sales in the calendar year and less than EUR 2,000 received. That reporting test is separate from the UK tax rules.
Watch the VAT threshold
If this becomes a real business, VAT registration can be needed once taxable turnover goes over GBP 90,000 in the last 12 months, or is expected to do so in the next 30 days.
MTD is coming in phases
Making Tax Digital for Income Tax starts from 6 April 2026 for some sole traders and landlords, depending on qualifying income. It is a filing obligation, not an extra tax.
Common online selling tax mistakes
Thinking platform reporting is a new tax
It is not. It is information reporting. The tax question still depends on whether you have taxable income or gains.
Using the trading allowance and expenses together
For the same trade, the GBP 1,000 trading allowance is an alternative to actual expenses, not an extra deduction. It is also not repeated separately for each marketplace.
Ignoring other income
Online selling profit is taxed on top of salary, pension or other income, so a side hustle can fall into a higher band.
Forgetting valuable personal possessions
A personal sale may avoid trading tax but still need a CGT check if a chargeable possession, or a set of related possessions, sells for more than GBP 6,000.
Selling online tax FAQs
Do I pay tax selling old clothes on Vinted?
What if my online selling income is under GBP 1,000?
Can I deduct eBay, Etsy or payment fees?
Does HMRC get data from online platforms?
What if my online selling costs are higher than my sales?
Why do platform totals not always match my tax year?
Does this calculator work out eBay selling fees?
Do I need to register as self-employed?
Official sources
Last verified: July 26 2026. Calculations are estimates based on the published rules and assumptions shown on this page.
- GOV.UK online platform income guidance - guidance on selling goods, personal possessions, services and creator income through online platforms
- GOV.UK trading allowance - GBP 1,000 trading allowance and when it can be used
- GOV.UK selling on a digital platform - seller reporting rules and the fewer than 30 sales / EUR 2,000 reporting exclusion
- GOV.UK VAT registration - GBP 90,000 taxable turnover threshold and rolling 12-month registration test
- GOV.UK Making Tax Digital for Income Tax - future MTD thresholds for sole traders and landlords
- HMRC HS227: Relief for trading losses - how trading losses arise and the main ways a loss may be claimed
- HMRC Business Income Manual BIM20205 - badges of trade used to help decide whether activity is trading
- GOV.UK self-employed National Insurance rates - Class 4 National Insurance rates and thresholds
- GOV.UK Self Assessment payments on account - GBP 1,000 and tax-deducted-at-source tests for payments on account
- GOV.UK Income Tax rates and allowances - Personal Allowance and Income Tax bands
- GOV.UK Capital Gains Tax on personal possessions - CGT warning for valuable personal possessions sold for more than GBP 6,000