If you’re trading on eBay as a business, your costs reduce your taxable profit. Every legitimate expense you claim means a lower tax bill. Here’s a complete guide to what eBay sellers can deduct in the UK.
Cost of Goods Sold
This is usually your biggest deduction — what you paid for the stock you’ve sold in the tax year:
- Items bought from wholesalers or distributors
- Retail arbitrage purchases — buying discounted goods to resell
- Car boot sale and charity shop purchases — keep a record of what you paid
- Clearance stock or job lots
You can only claim the cost of stock actually sold in that tax year. Unsold stock is a business asset carried forward to the next year. HMRC’s guidance on record-keeping is at gov.uk/self-employed-records.
eBay and Platform Fees
- eBay listing fees
- eBay final value fees
- eBay promoted listings costs
- PayPal or Payoneer transaction fees
- Stripe or other payment processor charges
Postage and Packaging
- Royal Mail, Evri, DPD, or other courier costs
- Boxes, padded envelopes, and polybags
- Bubble wrap, packing peanuts, and tissue paper
- Parcel tape and kraft tape
- Thermal label printer and label rolls
- Postage scales
Storage and Premises
- Self-storage unit rental if you store stock outside your home
- Business proportion of home costs if you store and pack from home
- Shelving, racking, and storage containers — claimable as equipment
Travel and Mileage
If you drive to source stock — car boot sales, wholesale markets, charity shops, supplier collections — those are business journeys. Claim at 45p per mile for the first 10,000 business miles and 25p per mile after that. Use an app like MileIQ or a simple spreadsheet to keep a mileage log.
Equipment and Technology
- Computer or laptop used for your eBay business
- Thermal label printer (Dymo, Zebra, Rollo)
- Barcode scanner
- Photography setup — lightbox, camera, or smartphone for listing photos
- Postage scales
Larger equipment purchases are deducted under the Annual Investment Allowance, meaning the full cost can be claimed in the year of purchase.
Software and Subscriptions
- eBay listing management software
- Inventory management tools
- Accounting software (Xero, QuickBooks, Wave)
- Canva or photo editing tools for listing images
Professional Fees
- Accountancy fees
- Business bank account charges
- Legal fees related to your selling business
Home Office
If you manage your eBay business from home, claim a proportion of your household costs. HMRC flat rate: £10 to £26 per month. Or use the actual cost method. Full detail at gov.uk/simpler-income-tax-simplified-expenses.
Get Your Records Right
The key is keeping clear records of what you paid for stock and what you sold it for. Cloud accounting software or a well-maintained spreadsheet works.
Read our guide to tax for eBay sellers UK for the full tax picture, or visit our accountant for eBay sellers page. Book a free discovery call to get started.