Selling on Vinted, freelancing on the side, renting a room, dog-walking at weekends — extra income is everywhere, and so is confusion about when it becomes taxable. The rules are actually simple once separated.
The £1,000 Trading Allowance
Your first £1,000 of gross trading income per tax year is completely tax-free and does not need reporting. Below it: do nothing. Above it: you must register for self-assessment, and you choose between deducting the flat £1,000 allowance or your actual expenses — whichever is larger.
Selling Your Own Stuff Is Not Trading
Clearing your wardrobe on eBay or Vinted is not taxable, whatever the total — you are disposing of personal possessions, usually at a loss. Trading means buying or making things to sell. The distinction is intent, and HMRC looks at frequency, profit-seeking and organisation.
Platforms Now Report You
Since January 2024, digital platforms (eBay, Airbnb, Uber, Etsy, Vinted and co) must report seller income to HMRC annually — generally those with 30+ sales or ~£1,700+ in a year. This changes nothing about what is taxable; it changes what HMRC already knows.
Do Not Forget
- Rent-a-Room relief: £7,500 tax-free for lodgers in your own home
- Registration deadline: 5 October after the tax year you crossed £1,000
- Side income stacks on top of your salary — it is taxed at your highest marginal rate