Do I pay tax selling on Facebook Marketplace or Gumtree?

The rules in plain English

The tax rules are the same wherever you sell: Facebook Marketplace, Gumtree, a car boot or an app. GOV.UK says you're unlikely to pay tax selling personal items from your home, like the contents of a loft or garage. If you buy or make goods to sell at a profit, you're likely to be trading. The first £1,000 of trading income a year is covered by the trading allowance; over that you'll normally need to register for Self Assessment.

Will HMRC be told?

Platforms that handle sales must report sellers who make 30 or more sales or receive about £1,700 (€2,000) or more in a calendar year. Many Facebook Marketplace and Gumtree sales are paid in cash or by bank transfer between you and the buyer, so they may not be reported. But being reported, or not, doesn't change whether tax is due.

Personal possessions

Most personal items are exempt from Capital Gains Tax. You may need to pay it on a single possession sold for £6,000 or more at a profit. Cars are usually exempt.

Worked examples

1. Upcycling furniture: £2,500 received, £900 costs, £28,000 wages. The allowance gives £1,500, lower than £1,600, so tax is £300.00, and you'd need to register.

2. A few resales: £800 received: covered by the £1,000 allowance, £0.00.

3. Full-time reseller, no job: £14,000 received, £6,000 costs: profit £8,000 is under the Personal Allowance, so £0.00, but you still need to register.