# HMRC and selling online: reporting rules and records > The platform reporting rules in plain English, when selling becomes trading, the £1,000 trading allowance, capital gains on valuables and the records to keep. Updated 6 October 2026 Since January 2024, Vinted, eBay and other platforms collect details of sellers who pass a set number of sales or a set amount of money, and send them to HMRC each January. Being reported does not change what you owe. Below are the rules HMRC publishes on gov.uk, as general information rather than personal tax advice. If your case is borderline or the sums are large, pay for an hour with an accountant. ## The platform reporting rules Under the reporting rules for digital platforms, a platform does not need to report you if you make fewer than 30 sales of goods in a calendar year and receive 2,000 euros or less, about £1,700. Hit 30 sales or go over that amount and your details go to HMRC. The rules apply from 1 January 2024. Platforms sent the first reports, covering 2024, by 31 January 2025, and send one every January after. The report shows what you earned on the platform for the year, less fees the platform took, split by quarter. Your platform may ask for your National Insurance number or date of birth to comply. Give it: the platform can restrict your account until you do. ## Selling your own things HMRC's tax help for side hustles says that if you sell unwanted personal belongings from time to time, such as old toys and clothes, you don't usually need to tell HMRC. If you clear a wardrobe and sell at a loss, you have made no income. A report from Vinted can land for a seller who only sold their own clothes. HMRC's own wording is that the reporting change does not mean you necessarily owe tax or need to do anything. ## The badges of trade HMRC's Business Income Manual lists badges of trade that point towards trading. They include a profit-seeking motive, the number of transactions, changes made to the item to sell it, the way the sale was run, borrowed money, and a short gap between buying and selling. HMRC weighs the badges together. Buying stock at car boot sales to sell on Vinted the same week ticks several. Selling your children's outgrown clothes ticks almost none. If you buy to resell, plan as if you are trading. ## The £1,000 trading allowance If you are trading, the first £1,000 of gross trading income in a tax year is tax-free under the trading allowance. Gross means sales before any costs come off. Go over £1,000 gross and you must register for Self Assessment by 5 October after the end of that tax year. You then choose: deduct the £1,000 allowance, or deduct your real costs such as stock, postage and packaging. You cannot do both, so once your costs pass £1,000, claiming costs usually wins. ## Capital gains on valuable items Selling a personal possession for £6,000 or more can bring Capital Gains Tax if you made a profit. That covers things like jewellery, paintings, antiques, coins and stamps, with special rules for sets. Cars and wasting assets with a short life, such as some antique clocks, are usually exempt. Ask an accountant before you sell a rare card collection or a box of gold sovereigns. ## Records to keep from the first sale Keep what you paid for each item, what it sold for, the platform fees, postage and packaging costs. A spreadsheet works. Export your yearly sales report from each platform too. Once you are in Self Assessment, gov.uk says to keep records for at least 5 years after the 31 January submission deadline for that tax year. With accounting software you can bring bank and platform payouts into one place and compare the allowance against your real costs. ## When to ask an accountant Book one if you sell across several platforms with mixed personal and bought stock, if you are near the £1,000 or VAT thresholds, if a single item tops £6,000, or if HMRC writes to you after a platform report. Bring a year of sales exports and your cost records. A clear spreadsheet cuts the time the accountant bills you for. ## Checklist - [ ] Count your sales and takings on each platform this year - [ ] Separate personal items from stock you bought to resell - [ ] Record cost, sale price, fees and postage for every sale - [ ] Register for Self Assessment by 5 October if trading income passed £1,000 - [ ] Keep records for 5 years after the 31 January deadline - [ ] Ask an accountant about any single sale over £6,000 ## Kit for this - **[FreeAgent](https://sellersetups.com/product/freeagent-accounting)**: Suits a sole trader who banks with NatWest, RBS, Ulster Bank or Mettle, since those business accounts include FreeAgent at no extra cost. You can file your Self Assessment return to HMRC from inside the app. - **[Xero](https://sellersetups.com/product/xero-accounting)**: Suits you once your shop has grown into a small business with stock, invoices and maybe VAT. It reads receipts you photograph and is HMRC recognised for Making Tax Digital. - **[QuickBooks](https://sellersetups.com/product/quickbooks-accounting)**: Suits you if you have registered as a sole trader and want income and costs in one place. HMRC recognises it for Making Tax Digital, and it can submit VAT returns to HMRC. - **[Sage](https://sellersetups.com/product/sage-accounting)**: Suits a sole trader without VAT registration who wants a free starting plan. You keep your sales and costs as digital records in Sage, then use them for Making Tax Digital quarterly updates. ## Questions ### Does Vinted report me to HMRC? Vinted reports sellers who make 30 or more sales of goods in a calendar year, or receive more than 2,000 euros, about £1,700. Being reported does not by itself mean you owe tax. ### Do I pay tax on selling my old clothes? Usually not. HMRC says occasional sales of unwanted personal belongings don't usually need reporting. Buying items to resell counts towards trading. ### Is the £1,000 allowance profit or sales? Sales. It applies to gross trading income before costs. Over £1,000 gross, register for Self Assessment. ### Can I claim the allowance and my costs? No. You pick one. If your real costs are more than £1,000, claiming them usually leaves less to pay tax on. ### Do I pay tax when I sell a valuable item? You may owe Capital Gains Tax on a profit from selling a personal possession for £6,000 or more. Check gov.uk's guidance or ask an accountant. ### Is this tax advice? No. It summarises HMRC's published guidance. Your own case depends on details only an accountant or HMRC can weigh.