Side hustle tax: when you have to tell HMRC
Quick answer: Selling your own used belongings is never taxed. You only owe tax if you are trading for profit and your income tops the £1,000 trading allowance — and online platforms now report bigger sellers to HMRC.
Headlines about a 'side hustle tax' caused a lot of worry, but the underlying rules have not changed. What changed is that platforms like Vinted, eBay, Etsy and Airbnb now share seller data with HMRC. This guide explains when a side income is actually taxable and what the £1,000 trading allowance covers.
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Primary source: gov.uk/guidance/selling-online-and-paying-taxes
Selling vs trading
Clearing out your wardrobe, selling old furniture or offloading unwanted gifts is not trading — these are personal possessions, usually sold for less than you paid, so there is no Income Tax to worry about no matter the total.
You are trading if you buy or make goods specifically to sell at a profit, or do so regularly and systematically as a business. Trading income is where tax can arise.
The £1,000 trading allowance
If your total trading and miscellaneous income for the year is £1,000 or less, the trading allowance covers it and you usually do not need to tell HMRC.
Above £1,000 you must register for Self Assessment and report the income. You can either deduct the £1,000 allowance from your turnover or deduct your actual allowable expenses — whichever leaves you better off.
What the platform rules mean for you
Since January 2024, digital platforms collect and report seller data to HMRC once a seller passes 30 sales or about £1,700 (€2,000) a year. The first reports were made in January 2025.
If you only sell personal items, there is nothing to do even if you are reported. If you are genuinely trading above the allowance, register and declare — the platform data simply helps HMRC match records.
Common questions
- I sold over £1,700 of old clothes — do I owe tax?
- No. Selling your own used belongings is not trading, so there is no Income Tax, even if the platform reports you to HMRC.
- Does the trading allowance cover all side income?
- It covers casual trading and miscellaneous income up to £1,000 combined. Rental income has its own separate £1,000 property allowance.
- When is the deadline to register?
- Register for Self Assessment by 5 October after the end of the tax year in which your taxable trading income first exceeded £1,000.