Tax is the topic most new vintage resellers avoid until they cannot. The UK rules are actually straightforward for the majority of resellers, but getting them wrong creates problems that are expensive to fix. This guide covers what you need to know in plain terms. It is not a substitute for professional tax advice, but it will give you a clear picture of where you stand.
THE 1,000 POUND TRADING ALLOWANCE
Every UK individual has a 1,000 pound trading allowance per tax year (April to April). If your total income from reselling is under 1,000 pounds in a tax year, you do not need to report it to HMRC and you pay no tax on it. Once your reselling income exceeds 1,000 pounds in a tax year, you need to register as self-employed and file a Self Assessment tax return.
WHAT COUNTS AS INCOME AND WHAT YOU CAN DEDUCT
Your taxable income for reselling is your total sales revenue. You then deduct allowable business expenses to arrive at your taxable profit. Allowable expenses typically include: cost of stock purchased (wholesale costs from suppliers like Messina Wholesale), platform fees, packaging materials, postage costs, and photography equipment used for the business.
This means your taxable position is much better than gross revenue suggests. If you generate 10,000 pounds in sales and your wholesale costs, fees, and packaging total 7,000 pounds, your taxable profit is approximately 3,000 pounds. At the basic income tax rate of 20%, your tax liability is 600 pounds plus National Insurance contributions.
DAC7: PLATFORM REPORTING TO HMRC
From January 2024, UK platforms including Depop, Vinted, and eBay are required under DAC7 regulations to report seller data to HMRC annually. This includes your name, address, national insurance number, and total sales figures for the year. HMRC can now cross-reference platform data with tax returns automatically. If you are selling above the 1,000 pound trading allowance and not filing a Self Assessment, the likelihood of HMRC identifying this has increased significantly.
VAT: WHEN DOES IT APPLY?
The VAT registration threshold in the UK is 90,000 pounds of taxable turnover in a rolling 12-month period (as of 2026). For the vast majority of vintage resellers, VAT is not a consideration. If your annual sales are approaching 90,000 pounds, seek professional advice before crossing the threshold as the administrative requirements are significant.
RECORD-KEEPING
HMRC requires you to keep records for a minimum of 5 years after the Self Assessment filing deadline for the relevant tax year. For a reselling business this means: records of all stock purchases (invoices or receipts from suppliers), records of all sales (platform transaction histories are sufficient), and records of all business expenses. Messina Wholesale provides invoices for all purchases, which serve as your stock cost records for tax purposes. The simplest approach is a spreadsheet updated weekly alongside saved supplier invoices per tax year.
REGISTERING AS SELF-EMPLOYED
If your reselling income exceeds the 1,000 pound trading allowance, register with HMRC at gov.uk/register-for-self-assessment. The Self Assessment deadline for online filing is 31 January following the end of the relevant tax year. Set aside 20 to 25% of your profit into a separate savings account designated for tax. Create a free account at Messina Wholesale and get 10% off your first order.