Why you might get taxed for selling on Vinted and eBay

Websites must now tell HMRC how much individuals are making, with the information shared among all countries who have signed up to database.

It is an international effort by the Organisation for Economic Cooperation and Development (OECD) to stop tax dodgers.

Websites where people can make money that isn't declared to the taxman include:

Other websites and money-making trades may also be included.

The rules originally came into force on January 1, 2024, and digital platforms — including Vinted, eBay, Airbnb, and Etsy — have been reporting user income data to HMRC since January 2025.

This means that for over a year, HMRC has had direct access to records of side hustle earnings, making it easier for the tax office to identify individuals whose income exceeds tax-free limits.

However, not all users will be required to pay tax, with only those exceeding a threshold affected.

The rules are in place to "bear down on tax evasion" by those making sums deemed 'significant', HMRC said, meaning they will now be treated like other businesses.

A HMRC spokesperson said: "These new rules will support our work to help online sellers get their tax right first time. They will also help us detect any deliberate non-compliance, ensuring a level playing field for all taxpayers."

Information sent over will include a user's tax ID, bank account details and the amount and number of transactions made by sellers.

Do I pay tax on my online sales?

In the UK, individuals are allowed to make a set amount of additional income before they must register as self-employed and file a self-assessment tax return.

The first £1,000 made through property is tax-free, so those only making this amount through Air bnb or other avenues won't have to declare it.

Those who 'trade' — such as selling crafted items online or offering ad hoc services like dog walking — benefit from a £1,000 tax-free trading allowance. You only need to register for a tax return if your total gross side hustle income exceeds this limit.

However, this threshold has remained frozen since it was introduced in 2017, creating a significant "stealth tax" for side-hustlers. According to our recent 2026 data study, if the allowance had risen in line with inflation, it would now be £1,336 for the 2025/26 tax year and is projected to be £1,364 for 2026/27.

As a result, thousands more people are being dragged into the tax net simply because their earnings have kept pace with rising prices while the allowance has not.

Some advise sellers to keep records even if they earn less than £1,000 in case they are asked for them.

The OECD rules are slightly more relaxed, with firms only needing to share data about sellers who make more than 30 transactions or £1,735 (€2,000) a year. But remember you are still liable for tax to the UK Government if you make more than £1,000.

You can claim expenses for your side hustle which may bring your tax liability down.

So if you made £2,000 selling second hand clothes on Vinted, but you spend £1,500 buying them, your profit would only be £500, taking you under the £1,000 taxable threshold.

It's therefore a good idea to keep receipts to prove this.

There are a number of expenses you can claim if you're self-employed and they're detailed here. https://www.gov.uk/expenses-if-youre-self-employed/how-to-claim

Failure to pay tax on a side hustle

If you earn over the £1,000 threshold for additional income, you must declare it on a self assessment tax return.

Failure to pay tax on these earnings on time may see you fined and you may also be liable to pay interest on late payments.

Tax owed from one tax year must be declared and paid by the end of the following January. For example, tax on any money earned between April 6, 2024, and April 5, 2025 (the 2024/25 tax year) must be paid by January 31, 2026.

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