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. Not sure if that's you, or when to do it? See our guide to registering for Self Assessment (who has to, the 5 October and 31 January deadlines, and how), our specific guide to whether you pay tax on Vinted, or — if you've already missed a deadline — our guide to Self Assessment late penalties.
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.