The Short Answer
- ✓ Selling old clothes? (Cleaning the attic): Almost certainly TAX FREE.
- ! Buying to resell? (For profit): POTENTIALLY TAXABLE.
- • The Limit: You have a £1,000 "Trading Allowance" before you even need to care.
1. The "Platform Reporting" Rule
The "new rule" (since Jan 2024) isn't actually a new tax. It's a new reporting requirement for platforms like Vinted, eBay, Etsy, and Airbnb.
They must send your details to HMRC if:
- You sell 30 or more items in a year, OR
- You receive more than ~£1,700 (€2,000) in a year.
If you trigger this, Vinted will ask for your National Insurance number. Don't panic. This doesn't mean you owe tax yet. It just means HMRC can see your income.
2. Trading vs Selling Personal Items
HMRC cares about Trading. Trading means you are acting like a business: buying stock, making items, intending to make a profit.
Not Trading (Safe)
Selling your own old coat for £20 when you bought it for £50 years ago. You made a "loss". No tax is due on this.
Trading (Taxable)
Buying 10 vintage coats from a charity shop for £5 each and reselling them on Depop for £30 each. You are running a business.
3. The £1,000 Safety Net
Even if you are trading (e.g. baking cakes, reselling stock), everyone in the UK gets a tax-free Trading Allowance of £1,000 per tax year (Apr 6 - Apr 5).
If your total revenue (total sales, before expenses) is under £1,000, you don't need to register, don't need to declare it, and pay £0 tax.
What if I exceed £1,000?
You must register for Self Assessment with HMRC.
You can then choose to deduct the £1,000 allowance OR your actual expenses (postage, fees, stock cost) from your income to calculate profit. You pay tax on the profit.