Depop Selling Tax Calculator

It depends. Selling your own personal wardrobe items (clothes you bought for personal use) is generally not taxable. However, if you regularly buy items specifically to resell on Depop for profit, HMRC treats this as trading income — taxable above the £1,000 Trading Allowance.

Yes — Depop must report seller income to HMRC under DAC7 rules (since January 2024). If you sell 30+ transactions or earn over approximately £1,700, Depop shares your information with HMRC automatically.

The £1,000 Trading Allowance means trading/selling income up to £1,000/year is completely tax-free and doesn't need to be declared. Above £1,000 annual income from trading, you must register for Self Assessment.

Depop charges a 10% selling fee on the sale price. Payment processing fees (via PayPal or Stripe) add approximately 3%. Total fees are typically 13–14% of the selling price. These are deductible business expenses.

Selling personal items at a loss or break-even is generally not taxable. If a single personal item sells for over £6,000 and at a profit, Capital Gains Tax could apply — but this is extremely rare for Depop transactions.

There's no item-count threshold — it's about total income. Once your total Depop income exceeds £1,000 in a tax year, you must register for Self Assessment, regardless of the number of transactions.

Yes — the purchase price of items you specifically bought for resale is a fully deductible cost of goods sold. Keep purchase receipts (charity shops, car boot sales, eBay, wholesale). Personal clothing you originally bought to wear is not deductible.

If you create and sell handmade items on Depop, this is clearly trading. Deduct material costs, tools, packaging, and production time costs. Handmade sellers are treated the same as Etsy sellers for tax purposes.

Yes — regularly buying from charity shops with the intent to resell at a profit on Depop is trading. The profit (selling price minus buying price minus fees/postage) is taxable above the £1,000 allowance.

Keep: Depop monthly sales reports, purchase receipts for all items (especially those bought specifically for resale), postage receipts, PayPal/bank statements, and a log of personal items sold separately from trading stock.

If HMRC classifies your Depop activity as self-employment and profits exceed £12,570, Class 4 NI (9%) applies. Most Depop sellers won't reach this threshold, but those with significant reselling businesses may.

Yes — if you have a regular job and Depop income, HMRC may adjust your PAYE tax code to collect additional tax in real-time, rather than waiting for a Self Assessment return. This is done automatically if you register and file.