A guide for UK online sellers: personal items or trading, platform reporting to HMRC, staying safe from buyer scams, your duties to buyers, and practical tips for getting good prices.
Selling clothes, gadgets and household items online is a good way to declutter and raise money. Most people selling their own things have no tax to pay, but it helps to understand the rules, stay safe from scams and know your duties to buyers.
Tax: personal items or trading?
Selling your own unwanted possessions is generally not trading, so there's usually no Income Tax to pay. HMRC has confirmed there are no new taxes on online sellers. If you buy items to resell, make things to sell, or sell regularly for profit, you may be trading. Trading income above the £1,000 trading allowance usually needs to be reported through Self Assessment. See our guide to side-hustle tax for details.
Valuable items, such as jewellery or art, sold for more than £6,000 each can sometimes involve Capital Gains Tax.
Platform reporting
Online marketplaces now report seller income to HMRC. For goods, platforms don't have to report sellers with fewer than 30 sales and €2,000 (about £1,700) or less in a calendar year. Being reported doesn't mean you owe tax; it depends on whether you are trading.
Staying safe from scams
- Keep payments on the platform. Buyers asking to pay outside the platform or by bank transfer may be scammers, and you may lose seller protection.
- Beware fake payment emails. Check payments in your account, not in emails or messages, before sending anything.
- Don't click links sent by buyers, particularly ones asking you to "confirm" a payment or enter card details.
- Use tracked postage and keep proof of postage.
- For collections, meet in a safe place, or have someone with you, and be cautious about bank transfers that could be reversed.
- Overpayment scams: a buyer "accidentally" pays too much and asks for a refund. Don't refund until the money has genuinely cleared.
Your duties to buyers
Private sellers must describe items accurately. If an item isn't as described, the buyer may be entitled to a refund. Private sellers don't have to accept returns just because a buyer changes their mind, unless the platform's rules require it.
Traders (businesses) have more obligations: under the Consumer Contracts Regulations, buyers generally have 14 days to cancel online orders, and goods must be of satisfactory quality under the Consumer Rights Act 2015. Don't pretend to be a private seller if you are trading.
Items you can't, or shouldn't, sell
- counterfeit goods, and recalled products;
- electrical goods with known safety faults;
- age-restricted items, such as knives, without the platform's required checks;
- items that breach the platform's rules.
Check product recall lists on GOV.UK before selling children's products and electricals.
Choosing where to sell
- General marketplaces: widest audience, with fees and seller protection programmes.
- Local listings: good for bulky items and collection-only sales, but agree payment carefully.
- Specialist platforms: fashion, books, electronics and collectables often sell for more on dedicated sites.
- Trade-in services: quick and simple for phones, games and books, usually at lower prices.
Getting a good price
- Check sold prices, not asking prices, for similar items.
- Take clear photos in natural light, showing any faults.
- Write honest descriptions with brand, size, model and condition.
- Include postage costs and platform fees in your price.
- Bundle small items to make postage worthwhile.
Frequently asked questions
Do I need to keep records?
If you're just decluttering, simple records are enough. If you might be trading, keep a record of income and costs.
Should I post items before payment clears?
No. Wait until the payment shows as received and cleared in your platform account.
What if a buyer claims an item never arrived?
Proof of tracked delivery helps. Follow the platform's dispute process.
Sources and further reading
- GOV.UK: Selling on a digital platform
- GOV.UK: No tax changes for online sellers
- Citizens Advice: Buying and selling privately
- GOV.UK: Product safety alerts and recalls
Facts checked on 20 October 2026. Spotted an error? Tell us and we will correct it.