Quick answer
Only if you’re trading. Selling your own unwanted things usually isn’t taxable. If you buy items to resell or make things to sell, that’s a trade: your total sales (not profit) count towards the MTD threshold alongside any other self-employment and rental income. Over £20,000 on your 2026/27 return means MTD from April 2028.
Key facts
Selling your own unwanted possessions usually isn’t taxable
Buying to resell or making things to sell is trading
Gross sales count towards the MTD threshold, not profit
Platforms report sellers to HMRC, but a report isn’t a tax bill
Trading or decluttering?
HMRC’s guidance says you’re probably trading if you sell goods you bought intending to sell for a profit, or things you made, including items you make as a hobby. Clearing out your wardrobe on Vinted or selling an old sofa on eBay is usually not trading, and that income doesn’t count for MTD.
How sales count towards the threshold
For MTD, qualifying income is your gross self-employment turnover plus any gross property income. For a seller, turnover is the total paid by buyers, before platform fees, postage costs and the cost of stock.
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
Example
A reseller sells £34,000 of trainers on eBay and Vinted in 2025/26. After stock, fees and postage the profit is £9,000. The MTD test uses the £34,000, which is over £30,000, so they start MTD from 6 April 2027.
Platform reporting
Online marketplaces collect seller details and report them to HMRC under the digital platform reporting rules. For sales of goods, a platform doesn’t have to report you if you made fewer than 30 sales and received 2,000 euros (about £1,700) or less in the year. Being reported doesn’t mean you owe tax. It means HMRC can see the income, so it needs to match what you declare.
Records to keep
Each sale: date, amount and platform
Platform and payment fees
Cost of the stock you sold
Postage and packaging
Any refunds or returns
Most marketplaces let you download a sales report, and some bookkeeping apps import them directly. Under MTD each transaction needs to be in your digital records.
Common questions
Does the £1,000 trading allowance help?
If your total trading income is £1,000 or less, you don’t need to tell HMRC. Above that, you can deduct the £1,000 allowance instead of your actual expenses, but not both. See MTD with a job and a side business.
I sell on several platforms. Is each one a separate business?
Not usually. If you’re selling the same kind of goods, eBay, Etsy and Vinted are sales channels for one trade, so you send one set of quarterly updates.
Use the MTD checker to see your own start date.