Do I need to do Self Assessment for my side hustle?
If you sell on Etsy, eBay, Vinted or Depop, the rules on when you owe tax — and what you have to tell HMRC — are clearer than the scare headlines suggest. Here is the honest version.
First question: are you actually trading?
There is a real difference between clearing out your own wardrobe and running a business. Selling your own used personal belongings is generally not taxable trading, even if you sell a lot of them. But if you are buying or making things to sell for profit, or selling as a business, that is trading — and trading income can be taxable. HMRC looks at the 'badges of trade' (things like whether you buy to resell, how often you sell, and whether you are selling for profit).
The £1,000 line
If you are trading, the key number is the £1,000 trading allowance. If your gross trading income (your total sales before any fees or costs) is £1,000 or less in a tax year, you may not need to tell HMRC at all. Go over £1,000 and you must register for Self Assessment by 5 October in the following tax year — so income earned in 2026/27 has a registration deadline of 5 October 2027.
Record the full amount the buyer paid you — including any postage they paid — as your income, then claim your fees and postage as expenses. Do not just report the amount that landed in your bank after fees. The gross figure is what counts toward the £1,000 threshold.
Where seller costs go on the tax form
If you do file, your platform costs have specific homes on the SA103S self-employment page:
| Cost | Box |
|---|---|
| Postage and packaging you pay to send orders | Box 18 (office costs) |
| Selling / final-value / commission fees | Box 19 (other expenses) |
| Payment-processing fees | Box 17 (financial charges) |
| Stock you bought to resell | Box 11 (cost of goods) |
Yes, the platforms report you to HMRC
Since the start of 2024, online marketplaces such as Etsy, eBay, Vinted and Amazon have been required to report seller information to HMRC, with the first reports going in from January 2025. This does not change what tax you owe — it just means the figures HMRC sees should match what you declare. The practical lesson is simple: keep clean records, report your gross income, and there is nothing to worry about.
The £1,000 trading allowance is separate from the £1,000 property allowance. If you also rent something out, that income has its own £1,000 allowance and is counted on its own.
Sources: HMRC guidance on trading income, the trading allowance and digital-platform reporting, plus the SA103S notes, on gov.uk. General information, not tax advice — if you are unsure whether you are trading, check with HMRC or an accountant.
General information, not tax or financial advice. Always confirm your own position with HMRC or a qualified adviser. This article was last checked against published gov.uk guidance on 13 July 2026. Rules and figures can change — always confirm your own position with HMRC or a qualified adviser.