With HMRC now receiving income data directly from eBay, the question of whether you need to file a self assessment return has become increasingly urgent for UK sellers. Here’s a clear guide to where you stand.
When Do eBay Sellers Need to File Self Assessment?
You need to complete a self assessment return if your eBay trading income exceeds £1,000 in a tax year. The trading allowance means the first £1,000 of gross self-employment income is tax-free and doesn’t need to be declared. Above that, you must register and file.
This is based on gross income — your total sales revenue — not profit. Even if costs are high and profit is small, you still need to file if gross income exceeds £1,000.
What Is the Difference Between Selling and Trading?
HMRC distinguishes between casual selling (disposing of personal items you already owned, generally not taxable) and trading (buying goods to resell or running an organised selling operation, which is taxable). If you buy stock with the intent to sell it at a profit, you are trading. Full guidance at gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-additional-income.
eBay Is Now Reporting Your Income to HMRC
Since January 2024, eBay and other digital platforms have been required to report seller income to HMRC under new digital platform reporting rules. If you’ve sold more than 30 items or your gross sales exceeded approximately £1,700 in the year, your data has been shared. If you’ve been selling without declaring, now is the time to get this sorted.
Key Self Assessment Dates
- 5 October: Register for self assessment if you’re a first-time filer
- 31 January: Online return deadline and tax payment due
- 31 July: Second payment on account due if applicable
Register at gov.uk/register-for-self-assessment. Penalties for late filing are detailed at gov.uk/self-assessment-tax-returns/penalties.
What Do You Need to Include on Your Return?
Your return should include total eBay trading income for the year (gross, before fees), all allowable business expenses (stock costs, eBay fees, postage, mileage, and more), and any other self-employment or employment income. Your taxable profit is income minus expenses — that’s what you pay tax on, not your total sales figure.
What If You Also Sell on Other Platforms?
If you sell across multiple platforms — eBay, Amazon, Vinted, Depop, Facebook Marketplace — all income needs to be declared on the same self assessment return. Each platform now reports income to HMRC separately, so they will all have a picture of your total selling activity.
Get Help From Simplr Accounting
We work with online sellers across the UK, including eBay traders getting on top of their tax position for the first time.
Read our guide to eBay seller expenses UK or visit our accountant for eBay sellers page. Book a free discovery call whenever you’re ready.