Selling on eBay, Etsy, Vinted, Amazon or your own shop can make you self-employed. Once you're trading, you're taxed on profit after costs of goods, fees, postage and packaging. The £1,000 trading allowance covers small amounts.
HMRC now receives sales data from online platforms, so it's worth getting your figures right.
When you're trading for profit rather than clearing out personal items. Above the £1,000 trading allowance you report the income.
On your profit — income minus allowable expenses. You pay income tax above your personal allowance, plus Class 4 National Insurance on profit above the threshold.
Costs incurred wholly for your work — tools, materials, travel, phone, insurance and more. Keeping them recorded reduces your taxable profit.
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