Do I have to pay tax on what I sell online?
It depends on why you sell. Selling your own unwanted personal items — clearing out your wardrobe — is generally not taxable, however much it totals. You may owe tax if you're trading: buying or making things to sell for profit, regularly. If your gross trading income is over £1,000 in a tax year you normally need to register for Self Assessment.
What is the £1,000 trading allowance?
A tax-free allowance of up to £1,000 a year for trading income. If your gross trading income (before costs) is £1,000 or less, it's covered by the allowance and you generally don't need to tell HMRC. Over £1,000, you can deduct either the £1,000 allowance or your actual expenses — whichever leaves you paying less. This tool picks the better one for you.
Why did Vinted or eBay ask for my details — is it a new tax?
No. Under rules in force since January 2025, digital platforms must report a seller to HMRC if that seller makes 30 or more sales or receives around £1,700 (€2,000) or more in a calendar year. It's a reporting rule — data sharing — not a new tax. HMRC's own guidance says being reported "does not automatically mean you owe tax."
How much tax would I pay on side-hustle profit?
Your side-hustle profit stacks on top of your other income, like your salary, and is taxed at your marginal rate: 20% within the basic-rate band, 40% in the higher-rate band. If your total self-employed profit is over £12,570 you also pay Class 4 National Insurance at 6% up to £50,270 and 2% above. The calculator estimates both.
Do I still pay Class 2 National Insurance?
For 2024/25 onwards Class 2 NI is no longer mandatory. If your profits are at or above the Small Profits Threshold (£6,845 for 2025/26, rising to £7,105 for 2026/27) it's treated as paid, so your State Pension record is protected at no cost. Below that you can pay it voluntarily (£3.50/week in 2025/26, £3.65/week in 2026/27). The calculator uses the threshold for the tax year you pick above.