The £1,000 trading allowance
Combined gross trading income up to £1,000 a year usually does not need reporting if you qualify for the allowance. It does not cover partnership income or certain income from employers or connected companies. Above £1,000, register for Self Assessment and choose either actual expenses or the allowance where eligible. Check GOV.UK before relying on an exemption.
Platform reporting
Since 2024 online platforms like eBay, Vinted and Airbnb report sellers' income to HMRC once they make 30 or more sales or earn about £1,700 in a year. Being reported doesn't mean tax is due: selling your own unwanted items isn't trading.
How it's taxed
Profit is added to your salary. For a basic-rate employee, that usually means 20% Income Tax plus 6% Class 4 NI on profit above what's covered by allowances.
Reserve from profit, not just receipts
Keep business costs and tax planning separate from personal spending. A project can generate cash receipts before you know the profit or final tax position for the year.
Try it with your own numbers
Estimate Income Tax and Class 4 National Insurance on self-employed profits for 2026/27, including other employment income.
Frequently asked questions
Do I pay tax selling old clothes on Vinted?
No, not if you're clearing out personal possessions for less than you paid.
Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab) · Self-employed National Insurance rates (opens GOV.UK in a new tab)
Sources
Tax year 2026/27. Check these official sources for current rules and deadlines.
Related calculators
- Self Employed Tax Calculator — Estimate Income Tax and Class 4 National Insurance on self-employed profits for 2026/27, including other employment income.
Related guides
- Tax for the Self-Employed — How sole traders are taxed in the UK: Income Tax on profit, Class 4 NI, allowable expenses and payments on account.
- Tax on a Second Job — How a second job is taxed, why it usually gets a BR code, and how to split your Personal Allowance between jobs.
- UK Tax-Free Allowances — A summary of UK tax-free allowances for 2026/27: Personal Allowance, savings, dividends, CGT, trading, property, ISAs and pensions.