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Updated for 2026/27 Tax Year
HMRC Fact-Checked

Do You Pay Tax on Depop Sales in the UK? (2026/27 Rules)

Everything UK vintage sellers and resellers need to know about HMRC digital platform reporting for Depop. Understand when sales are tax-free and what expenses you can claim.

T
TaxWiz Editorial Verified Author

UK Tax Content Specialist • Published 2026-04-13

Reviewed by Qualified UK Tax Accountant

Depop Seller Profit & Tax Checker

Are you flipping vintage pieces on Depop? Use our free calculator to see your net profit after stock costs, fees, and postage.

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HMRC Platform Reporting for Depop (SI 2023/1263)

In January 2024, the UK enacted The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023 (SI 2023/1263), aligning HMRC's oversight with international OECD reporting standards.

Under these statutory rules, online platforms - including Depop, Vinted, and eBay - are legally required to record and report seller transactional data to HMRC annually if you meet either threshold in a calendar year:

The Automatic Depop Reporting Triggers:

  • 30 or more completed sales in a calendar year (regardless of item price)
  • Gross sales revenue of €2,000 or more (approximately £1,700 – £1,735 depending on HMRC exchange rates)

The Short Answer

Being reported to HMRC does NOT mean you automatically owe tax.

Reporting is simply an automated exchange of information. HMRC uses this data to cross-reference with tax returns. If you are a casual individual selling your own second-hand wardrobe, you owe zero tax because you have no trading profit.

Wardrobe Decluttering vs. Commercial Reselling

HMRC distinguishes between hobby decluttering and commercial businesses using established legal standards known as the "Badges of Trade" (HMRC Business Income Manual BIM20205):

  • Personal Decluttering (Tax-Free): You sell clothes, shoes, or accessories you originally bought for personal wear. Because you are recovering a fraction of your initial retail cost, you are selling at a personal loss. This is completely non-taxable.
  • Commercial Reselling (Taxable Trade): You scour charity shops, car boot sales, wholesale deadstock, or vintage outlets with the specific intention of modifying, styling, and reselling items on Depop for a commercial markup. This activity is legally a sole trader business.

The £1,000 Trading Allowance Rule

Even if you are an intentional vintage reseller flipping pieces for profit, the law protects you with an annual statutory exemption:

In Plain English

What is "The £1,000 Trading Allowance"?

Under s94B of ITTOIA 2005, every UK resident can earn up to £1,000 in gross trading revenue completely tax-free per tax year. If your total gross turnover across all online platforms (Depop + Vinted + eBay) is £1,000 or less, you do not need to register as a sole trader or inform HMRC.

Important Turnover Rule: The £1,000 threshold applies to Gross Revenue (total sales before deducting fees or postage), NOT your net profit. If you sell £1,200 worth of vintage gear but spent £800 on inventory, your gross sales exceed £1,000, so you must register for Self Assessment even though your net profit is only £400.

Depop's Zero-Fee Model & Allowable Deductions

In 2024, Depop eliminated the traditional 10% seller fee for UK listings, shifting platform marketplace fees to the buyer. However, sellers still incur direct business costs, all of which are allowable business deductions (s34 ITTOIA 2005):

Allowable Expenses for Depop Resellers:

  • Inventory Costs: Receipts and invoices from car boot sales, thrift shops, and vintage wholesalers.
  • Payment Processing Fees: Depop Payments / Stripe / PayPal processing fees (typically 2.9% + 30p per transaction).
  • Postage & Courier Costs: Royal Mail, Evri, or DPD shipping labels paid out-of-pocket.
  • Packaging Materials: Poly mailers, custom stickers, tissue paper, bubble wrap, and label printers.
  • Studio & Presentation: Mannequins, ring lights, backdrop fabric, steam cleaners, and clothing racks.
  • Dry Cleaning & Restoration: Fabric dye, shoe polish, specialized detergent, and repairs.

Worked Example: Vintage Reseller Tax Calculation

Let's look at how a dedicated vintage curator calculates their taxable profit for Self Assessment:

Real Example: Alex (Vintage Depop Seller)

Alex sources 90s sportswear and retro jackets. Over the tax year, Alex generates £3,600 in gross Depop sales.

Gross Depop Sales Turnover£3,600
Vintage Stock Purchases--£1,400
Postage & Shipping Labels--£480
Payment Processing & Packaging--£350
Net Taxable Profit (Subject to Tax)£1,370

Takeaway: Because Alex's gross revenue exceeds £1,000, Alex must file a Self Assessment return. Alex chooses to deduct actual business costs rather than the £1,000 trading allowance, reducing taxable profit to £1,370.

Your Depop Seller Action Plan

Depop Seller Compliance Roadmap

  1. Track your gross turnover: Check your Depop sales total across each tax year (6 April to 5 April).
  2. Save digital receipts: Photograph and log all thrift store receipts, shipping labels, and packaging purchases.
  3. Register by 5 October: If your gross sales cross £1,000, register with HMRC using our Self Assessment Registration Guide.
  4. Compare allowances: If your total expenses were under £1,000, claim the flat £1,000 Trading Allowance instead of actual expenses to minimize your paperwork.
Go to Online Seller Hub

Frequently Asked Questions

Yes, if you reach the reporting threshold. Under UK SI 2023/1263, Depop automatically reports your seller details to HMRC if you make 30 or more sales or generate €2,000 (roughly £1,700–£1,735) in gross sales within a calendar year.
No. Selling your own used personal clothing for less than you originally paid represents a capital loss. You have zero profit and zero tax liability, regardless of how many items you sell.
Yes. If you are operating as a commercial reseller, you only pay Income Tax on your net profits. You can deduct inventory purchase costs, packaging supplies, shipping fees, payment processing fees, and garment cleaning.
Yes. In early 2024, Depop eliminated the 10% selling fee for UK-based sellers, shifting the marketplace fee to buyers. However, payment processing fees (typically around 2.9% + 30p via Depop Payments or PayPal) still apply and remain 100% tax-deductible.

UK Tax Information & Editorial Policy

TaxWiz content is produced for general educational information for UK sole traders, side hustlers, and creators under the 2026/27 tax year legislation (Finance Acts & HMRC internal manuals). We do not provide regulated legal or financial advice. Tax outcomes depend on individual circumstances. For bespoke advice, consult a qualified UK chartered accountant (ICAEW/CTA/AAT). Read our full Disclaimer and Editorial Standards.