HMRC Side Hustle Tax 2026: eBay, Vinted, and What You Actually Need to Report

June 16, 2026 George 0 Comments

The phrase ‘side hustle tax’ spread rapidly when Vinted and eBay started asking for National Insurance numbers — and the headlines that followed convinced many casual sellers they were about to receive unexpected HMRC fines. The reality is considerably less alarming than the headlines suggested. Here’s what actually changed, what the rules actually say, and how to work out whether any of this affects you.

What Actually Changed: Platform Reporting, Not a New Tax

There is no new ‘side hustle tax.’ The underlying tax rules for online selling income are unchanged — it has always been the case that income from trading activities is subject to income tax in the UK. What changed from 1 January 2024 is how HMRC finds out about that income.

Under new UK rules derived from an OECD framework (often called DAC7), digital platforms — including eBay, Vinted, Depop, Etsy, Airbnb, and many others — are legally required to collect information about sellers who meet either reporting threshold and share that data directly with HMRC each year. Sellers also receive a copy of the data their platform reports, so both HMRC and the seller know what has been submitted. These reporting rules became fully and legally enforced in the UK from April 2026.

The Reporting Thresholds: What Triggers a Report to HMRC

Platforms report sellers to HMRC if either of the following thresholds is met within a calendar year (1 January to 31 December):

Threshold	Current Figure
Number of sales transactions	30 or more within the calendar year
Total sales value	2,000 euros (approximately £1,707 to £1,735 depending on exchange rate)

Crucially, both thresholds must be considered independently — either one triggers a report. Selling 31 items totalling £200 triggers reporting because of the transaction count. Selling 5 items for £2,000 triggers it because of the value.

It is also important to understand what ‘reported’ means: it means HMRC receives the sales data. It does not automatically mean tax is owed. Whether tax is owed depends on whether the selling activity is classified as ‘trading’ — and that distinction matters enormously for casual sellers clearing out personal possessions.

Personal Selling vs Trading: The Key Distinction

The fundamental question HMRC applies is whether a seller is ‘trading’ — buying or making items with the intention of selling for profit — or simply selling personal possessions they already owned. This distinction is not new, but the reporting rules make it more visible:

Selling personal possessions (old clothes, unwanted gifts, household items): Generally not trading, not taxable income, regardless of how many items are sold or how much they raise. HMRC is not interested in someone clearing out their wardrobe on Vinted
Buying items specifically to resell (‘flipping’): This is trading, and income above the £1,000 trading allowance is taxable
Making items to sell (handmade goods on Etsy or similar): Also trading in most cases
Consistent, regular selling behaviour that looks like a business: HMRC looks at the pattern — frequency, volume, whether items were bought to resell — rather than any single transaction

The 30-item or £1,735 threshold is a reporting threshold, not a tax threshold. Crossing it means the platform tells HMRC about sales; it does not mean tax is automatically due.

The £1,000 Trading Allowance

If selling activity is classified as trading, the first £1,000 of gross trading income each tax year is tax-free under the trading allowance. This means:

Gross trading income (before expenses) of £1,000 or less: No tax due, no self-assessment registration needed
Gross trading income between £1,001 and higher amounts: The taxable portion is either gross income minus the £1,000 allowance (simpler), or gross income minus actual allowable expenses (if higher than £1,000) — whichever produces the lower tax bill
Self-assessment registration: Required once gross trading income exceeds £1,000

The trading allowance applies to income from trading activities. It does not apply to selling personal possessions that were not acquired for the purpose of resale.

How to Find Your Sales Summary on Vinted

Vinted sellers who want to check their sales data — either to prepare for self-assessment or to review what Vinted has or will report to HMRC — can find their sales summary within the Vinted app:

Open the Vinted app and go to your Profile
Navigate to My Sales or the Sales & Payments section (the exact menu label varies slightly by app version and update)
Sales history, total proceeds, and transaction counts are accessible here

Vinted also provides sellers with a copy of the data it reports to HMRC, so sellers can see exactly what information has been shared. One practical note from platform guides: Vinted (like eBay and some other platforms) reports on a calendar year basis (January to December), while the UK tax year runs from 6 April to 5 April. If using platform reports for self-assessment purposes, calendar year data may need to be converted to the relevant tax year period.

The Self-Assessment Threshold Increase

Separately from the platform reporting rules, HMRC has announced a change to the income threshold that requires a self-assessment tax return. The threshold is increasing from £100,000 of income to £150,000 — meaning some higher earners who previously had to file a self-assessment return will no longer be required to do so. This change is unrelated to the side hustle platform reporting rules, but it is the ‘HMRC tax return threshold increase’ that many people have been searching for context on.

HMRC’s New Powers: Making Tax Digital

April 2026 also marks the beginning of Making Tax Digital for Income Tax Self Assessment (MTD ITSA) for self-employed individuals and landlords with gross income over £50,000. Under MTD ITSA, affected taxpayers must use compatible software to keep digital records and submit quarterly updates to HMRC, rather than a single annual self-assessment return. The income threshold for MTD ITSA is expected to be extended to those earning over £30,000 in subsequent years.

For most Vinted and eBay casual sellers, MTD ITSA will not apply immediately — the £50,000 threshold is well above what most side-hustle sellers earn. But for those running more significant online businesses through platforms, it is worth understanding as a coming change to how tax reporting works.

Christmas and Seasonal Selling: Does the Time of Year Matter?

‘HMRC Christmas side hustle tax’ searches reflect concern about selling in the lead-up to Christmas — whether a December selling surge could trigger reporting or tax obligations. The answer is: the same rules apply year-round, as the thresholds are measured across the full calendar year (January to December). There is no separate seasonal rule or higher-risk period. Someone who sells 29 items of old clothing all year and then sells one more item in December has crossed the 30-transaction reporting threshold — but whether tax is owed still depends on the trading vs personal selling distinction, not the time of year.

HMRC Tax Scheme Warnings: A Different Issue

‘HMRC tax scheme warning’ searches typically relate to a separate topic: HMRC’s published warnings about specific tax avoidance schemes that it considers non-compliant or abusive. These are distinct from the platform reporting rules and are aimed primarily at arrangements involving employment income, disguised remuneration, or structured tax mitigation products — not casual online selling. HMRC publishes a list of schemes it is investigating and regularly issues warnings about promoters of schemes it considers potentially unlawful. If a financial product or arrangement promises to dramatically reduce tax through a structured scheme rather than through straightforward allowances (like ISAs or pension contributions), checking whether it appears on HMRC’s scheme warning list is worthwhile.

Frequently Asked Questions

Is there a new ‘side hustle tax’ in the UK?

No — there is no new tax. The underlying income tax rules for online trading income are unchanged. What changed from January 2024 is that platforms like eBay, Vinted, and Depop now automatically report seller data to HMRC, making it easier for HMRC to identify undeclared trading income.

How many items can I sell on Vinted before paying tax?

There is no specific item count that triggers tax. The reporting threshold (30 transactions or 2,000 euros in sales) triggers a platform report to HMRC — but whether tax is owed depends on whether the selling is classified as ‘trading’ rather than selling personal possessions. Casual sellers clearing personal items generally do not owe tax regardless of quantity.

What is the tax-free allowance for online selling?

The trading allowance is £1,000 of gross trading income per tax year, tax-free. This applies to income from genuine trading activity (buying/making to sell). Selling personal possessions is not trading and is not subject to income tax regardless of proceeds.

How do I find my sales summary on Vinted for tax purposes?

Go to your Profile in the Vinted app, then navigate to My Sales or Sales & Payments to see your sales history and total proceeds. Vinted also provides a copy of the data it reports to HMRC each year.

What is the HMRC tax return threshold increase?

HMRC has announced the income threshold that requires self-assessment filing is increasing from £100,000 to £150,000 — meaning some higher earners who currently file a self-assessment return will no longer need to do so. This is a separate change from the platform reporting rules.

Final Thoughts

The ‘side hustle tax’ headlines caused significant confusion, but the underlying picture is straightforward: HMRC can now see online platform income more easily than before, the same income tax rules that have always applied continue to apply, and the vast majority of casual sellers clearing out personal possessions have nothing to worry about. The people who need to take action are those who are genuinely trading — buying or making items to sell for profit — and whose gross trading income exceeds £1,000. For them, self-assessment registration and filing are required, and the new reporting rules mean that failing to do so is more likely to be detected than it was before 2024.