Selling Items Online? Here's What You Need to Know About Tax
- Brian Pusser
- 4 days ago
- 2 min read
Turning unwanted items into extra cash can feel like a fun hobby or an easy side hustle. Whether you're selling homemade crafts, upcycling old furniture, or flipping products for profit online, it’s important to understand when this activity could count as trading — and when you need to tell HMRC.
What Counts as Trading?
If you're doing any of the following, HMRC could view your activity as trading:
Selling things that you make (like arts and crafts, home-cooked food, beauty or health products, or even digital creative products)
Upcycling furniture and selling it on
Buying items with the intention of reselling them for a profit, such as listing products on auction sites or marketplaces
Even if you started it casually, if you're making things or reselling intentionally, it could trigger tax responsibilities.
When Do You Need to Tell HMRC?
If you earn £1,000 or less a year from all your trading activities combined, you’re covered by HMRC’s trading allowance. This means you won't have to pay any tax on that income, and you usually don’t have to tell HMRC.
Earn over £1,000?You must register with HMRC, and you may need to file a Self Assessment tax return to pay tax on your profits.
It’s important to track your sales and expenses carefully, so you have the correct information when it comes to reporting.
What If You're Just Selling Personal Items?
If you're simply selling unwanted personal items — like clearing out old clothes, furniture, or gadgets you no longer use — and not buying them specifically to resell, it’s unlikely you’ll be seen as trading.In most cases, you won't have to pay tax on casual sales of your personal belongings.
Quick Checklist: Do You Need to Tell HMRC?
Are you making or buying things with the aim to sell them for a profit?
Are you earning over £1,000 from all your selling activities in a tax year?
If you answer yes to either of these, you likely need to tell HMRC.You can also use HMRC’s online tool to check whether you need to declare additional income. (Visit GOV.UK and search for "tell HMRC about additional income.")
Final Tip
Keeping clear records from the start will save you time and stress later. Track every sale, expense, and fee, even if you’re just starting out.It’s much easier to stay ahead of your tax responsibilities — and you’ll avoid any nasty surprises down the line.
If you’re unsure where you stand or need help registering with HMRC, get in touch — we're here to help make it simple!
Need Help Sorting Your Side Hustle Taxes?
If you're selling online and not sure whether you need to register with HMRC — or you just want to make sure you're doing everything by the book — Brian's here to help.From setting up your Self Assessment to tracking your income properly, we'll make the whole process simple and stress-free.
📞 Get in touch today and let's make sure you're sorted — so you can focus on growing your side hustle without any tax worries!