Online Selling Profit & Tax Calculator

Calculate your profit and UK tax from selling on any online marketplace. Enter revenue, fees, costs, and find out exactly what you owe HMRC.

Online Marketplace Selling Tax Calculator

Frequently Asked Questions

Which online platforms report income to HMRC?

Under DAC7 rules (from January 2024), all major UK-regulated platforms must report seller income to HMRC: eBay, Etsy, Amazon, Depop, Vinted, Facebook Marketplace, Airbnb, and others. HMRC automatically receives data on UK sellers earning over approximately £1,700/year.

What is the £1,000 Trading Allowance?

The Trading Allowance gives everyone £1,000 of tax-free income from trading/selling activities per year. If your total online selling income across ALL platforms is below £1,000, you owe no tax and don't need to tell HMRC. Above £1,000, register for Self Assessment.

How do I combine income from multiple platforms?

Add all platform incomes together — HMRC looks at total trading income, not per-platform. If you earn £700 on eBay and £400 on Etsy (£1,100 total), you exceed the £1,000 threshold and must declare it, even though individual platforms are below.

Which platform has the lowest fees for UK sellers?

Vinted charges zero seller fees (buyers pay a protection fee). Facebook Marketplace charges 5% on shipped items (local pickup is free). These are the most fee-efficient. eBay (12.8%), Depop (10%), and Etsy (6.5% + listing) have moderate fees. Amazon charges the most (8–15%).

Can I deduct the Trading Allowance alongside actual expenses?

No — it's one method or the other. If actual expenses exceed £1,000, claiming actual expenses gives a lower taxable profit. If actual expenses are less than £1,000, use the Trading Allowance. You choose the more tax-efficient method each year.

What happens if I didn't declare online selling income?

HMRC uses Connect software to match platform data against tax returns. Penalties for undeclared income: 0–30% for unprompted disclosure, up to 100% for deliberate concealment. Voluntarily disclosing to HMRC before they contact you significantly reduces penalties.

Is Vinted income taxable in the UK?

Selling your own used personal items on Vinted is generally not taxable. However, regularly buying items to resell on Vinted for profit is trading income. If total reselling income exceeds £1,000/year, register for Self Assessment.

Do I need a separate bank account for online selling?

Not legally required, but strongly recommended. A separate account makes it much easier to track income and expenses, produce accounts for Self Assessment, and demonstrate to HMRC that business and personal finances are separated.

What is the best way to track online selling expenses?

Use a simple spreadsheet (columns: date, platform, description, income, expense, category) or free software like Wave Accounting. Download monthly seller reports from each platform. Keep all purchase receipts — even from charity shops and car boots.

Can I sell online as a hobby without paying tax?

True hobbies (irregular, not profit-motivated, personal enjoyment) are generally not taxable. HMRC's 'badges of trade' test determines the boundary. Consistently buying low and selling high on multiple platforms is almost certainly trading, not a hobby.

What VAT rate applies to online sales?

Most goods sold by individuals are zero-rated or standard-rated. You only need to charge and account for VAT if your annual turnover exceeds £90,000 (VAT threshold). Below this, prices quoted include no VAT obligation for the seller.

How do I appeal if HMRC thinks I owe tax on personal sales?

Keep evidence that items sold were personal possessions: original purchase receipts, photos showing items were personally used, correspondence showing items were gifts. HMRC burden of proof requires them to show you were trading — good records help you demonstrate otherwise.