Does HMRC Know About My eBay Sales? The 30-Item Rule

Quick answer: Yes, HMRC can now see many online sellers' sales. Under the digital platform reporting rules, marketplaces such as eBay, Etsy and Vinted report sellers who make 30 or more sales, or earn more than €2,000 (about £1,700), in a year. Being reported doesn't automatically mean you owe tax. Selling your own unwanted things is usually tax-free, but buying or making items to sell at a profit is trading, and trading income above the £1,000 trading allowance must be declared.

"hmrc ebay tax" is one of the most searched eBay questions in the UK. Tekovex manages marketplace stores for UK and US sellers, and our client stores have passed £1 million in UK sales. Here is what the rules mean in practice. This is general information, not tax advice.

What is the 30-item / £1,700 rule?

Platforms don't have to report a seller who makes fewer than 30 sales of goods and receives €2,000 (about £1,700) or less in a year. If you go over either limit, the platform reports you to HMRC. Platforms began collecting this information from January 2024, and the first reports went to HMRC in early 2025.

What do platforms share with HMRC?

• Your name, address and date of birth (or business details)
• Your National Insurance number or tax reference, where you have one
• Your total sales income and number of sales in the year
• Fees and commissions the platform charged you
• Your bank account details used for payouts

Platforms also send you a copy of the information they report.

Do I have to pay tax on eBay sales?

• Selling your own unwanted items: usually no tax, even if you sell lots of them. Personal items sold for £6,000 or more may be subject to Capital Gains Tax.
• Buying to resell, or making items to sell: this is trading. The first £1,000 of trading income each tax year is tax-free under the trading allowance.
• Trading income above £1,000: register for Self Assessment and declare your profit. You only pay income tax if your total income goes over your personal allowance (£12,570 for most people).

When do I need to register with HMRC?

Register for Self Assessment by 5 October after the end of the tax year in which you started trading. Online tax returns are due by 31 January. Keep records of sales, stock costs, fees and postage, because you pay tax on profit, not on sales.

Examples

• 40 old clothes sold on Vinted for £600 in total: you'll likely be reported (over 30 sales), but there's no tax to pay, because these are personal items.
• Buying trainers to resell, £800 profit in the year: this is trading, but it's under the £1,000 trading allowance, so there's usually nothing to declare.
• Running an eBay store with £5,000 profit: this is trading over £1,000. Register for Self Assessment and declare it.

Frequently asked questions

Does eBay report to HMRC?

Yes. eBay reports sellers who make 30 or more sales, or earn more than €2,000 (about £1,700), in a year.

Will I get a letter from HMRC about my eBay sales?

HMRC may write to sellers whose reported sales suggest undeclared trading. Reply with your records showing whether the sales were personal items or trading.

Do I pay tax on Vinted or Etsy sales?

The same rules apply on every platform: personal items are usually tax-free, while trading income over £1,000 must be declared.

Is the threshold for paying tax 30 items?

No. 30 items is the reporting threshold. Whether you pay tax depends on whether you are trading and how much profit you make.

Should I speak to an accountant?

Yes, if you're unsure whether your selling counts as trading, or your profit is close to or above £1,000.

Running your selling as a business?

Tekovex manages eBay, Etsy, Amazon and TikTok Shop stores for UK sellers, with clear monthly sales and fee reports that make your tax return easier. See our eBay services or book a free consultation.