In the UK, most people who sell unwanted clothes through second-hand platforms such as Vinted, eBay, and Depop do not need to pay tax on that income. But HM Revenue & Customs (HMRC) has drawn a key line: if you buy goods and resell them for a profit, or make goods yourself and sell them, then as long as your trading income in a tax year exceeds £1,000, you must register for self-assessment. Note that the £1,000 refers to income, not profit after deducting costs.

There is an urgent deadline right now: those registering for self-assessment for the 2025/26 tax year for the first time must do so by October 5. Registration itself is not complicated. After checking eligibility on the relevant Gov.UK page, you can do it online with your National Insurance number and income information from the previous tax year, usually in just a few minutes.

Another easily overlooked change is platforms' information-reporting obligations. HMRC now requires digital platforms to report information on certain sellers in accordance with the rules, operating in a way similar to how stockbrokers have reported client data to tax authorities for years. But being reported to HMRC by a platform does not automatically mean you owe tax—the responsibility to register, file, and pay on time still falls on the seller, and failure to do so by the deadline may result in penalties.

The article notes that in recent years the UK government has lowered several tax thresholds, bringing more people into the scope of self-assessment. Take the capital gains tax allowance: in the 2022/23 tax year it was still £12,300, in 2023/24 it fell to £6,000, and from the 2024/25 tax year it is only £3,000 and has remained so since. If investment gains outside tax-free accounts exceed this amount, the registration obligation is automatically triggered. If you buy and sell frequently and in large amounts, HMRC may treat it as trading rather than investing, with the corresponding income handled under income tax rather than capital gains tax, but either way registration is required. Cryptocurrency is subject to the same £3,000 allowance and cannot be placed in tax-advantaged accounts such as an ISA or SIPP. In addition, UK tax residents' overseas income that is separate from their main income and exceeds £1,000 may also require registration. Such cases are relatively complex, and those with higher incomes would be best advised to consult an accountant.

For the second-hand resale industry, this mechanism means that professional sellers on platforms are gradually being brought into a tax regulatory framework similar to that of traditional commercial channels. Platforms reporting data to tax authorities is moving resale income from what was once a grey area toward traceability; and the £1,000 income threshold and the October 5 registration deadline have become a practical dividing line between "clearing out your wardrobe" and "running a business."

Source: Vinted tax rules UK: One-week warning served for online side-hustles and freelancers · Originally published 2026-09-28