Fees come off first
Fees are deducted before payout. Book only the deposit and you understate both sales and costs.
Accountants for eBay sellers
eBay Accountants for UK Sellers
Whether eBay has just told you it shared your sales with HMRC, or you run a used-goods business that has outgrown spreadsheets, an eBay accountant who understands payouts, fees and the margin scheme makes the numbers simple. We start by working out whether you need us at all.
Book a discovery call 
Led by an ICAEW chartered accountant- Xero or QuickBooks included in the fee
- Rolling monthly agreement, no minimum term
In short
eCounts is an eBay accountant for UK sellers who trade, not people clearing out the loft. We handle Self Assessment or company accounts, VAT including the second-hand margin scheme, and the reconciliation of eBay payouts and fees into Xero or QuickBooks. If you are a casual seller worried by an email from eBay, this page explains when you owe tax and when you do not.
Platforms we reconcile every month
Trademarks belong to their owners. eCounts is independent and not endorsed by these platforms.
Selling on eBay: tax in the UK
Selling on eBay and tax in the UK: are you trading?
Selling your own unwanted things, such as the contents of a loft or garage, is not usually taxable. The position changes when you buy or make goods to sell at a profit. That is trading, and trading profits are taxable.
HMRC judges this using the badges of trade. No single badge decides it, but regularly buying to resell, selling quickly and improving items first all point towards a trade.
If you are trading, the trading allowance lets you receive up to £1,000 of gross trading income in a tax year without paying tax or telling HMRC. That is £1,000 of sales before expenses, not £1,000 of profit. Above it, you need to register for Self Assessment by 5 October after the end of the tax year. You can deduct either the £1,000 allowance or your actual costs, not both, so a reseller with real stock costs usually does better claiming expenses.
HMRC digital platform reporting
Had an email from eBay about HMRC?
Since 1 January 2024, UK digital platforms, eBay included, have had to collect information about their sellers each calendar year and send it to HMRC by the following 31 January. The first reports, covering 2024, went to HMRC in January 2025. The report shows your total earnings for the year, less fees the platform deducted, broken down by quarter.
eBay does not have to report you if you made fewer than 30 sales of goods and received less than about £1,700 (€2,000) in the calendar year. Above either line, your details are shared and eBay tells you so.
The key point: this is not a new tax, and being reported does not by itself mean you owe anything. A hobby seller is in the same position as before. A trader who has not registered should act now rather than wait for a letter. Our bookkeeping service can rebuild past years from your eBay reports if records are thin.
Personal items
Selling personal items on eBay: Income Tax or Capital Gains Tax?
Selling your own unwanted things, such as old clothes or furniture, is not trading, so it is not subject to Income Tax. Capital Gains Tax can apply to personal possessions, but a possession sold for £6,000 or less is generally exempt, and most second-hand items sell for less than you paid, so there is no gain to tax.
It is different once you are buying to resell or selling regularly for profit. That is trading: profit above the £1,000 trading allowance goes on a Self Assessment tax return, with Income Tax and Class 4 National Insurance at 6% on profits between £12,570 and £50,270 for 2026/27. Sole traders with qualifying income over £50,000 also need Making Tax Digital for Income Tax from April 2026, falling to £30,000 from April 2027. Larger resellers often trade through limited companies, which pay Corporation Tax instead.
How eBay money works
Why your eBay payout never matches your sales
eBay's managed payments make it simpler to get paid and harder to see what you earned.
Refunds hit later payouts
Refunds and eBay Money Back Guarantee cases are often taken from a later payout, so month-end figures drift unless tracked.
Holds and timing
New or flagged accounts can have funds held, and payouts follow eBay's schedule, not your month end. Reconciling needs the payout report, not just the bank feed.
eBay fees
What eBay takes from a sale
All of these are allowable costs if you are trading. Most never appear as a separate line in your bank.
| Fee | What it is | Often missed because |
|---|---|---|
| Final value fee | A percentage of the total sale, including postage, varying by category | It is netted off the payout |
| Per-order fee | A fixed charge on each order | It is small per order but adds up fast |
| Insertion fees | Charged once you exceed your free listing allowance | It depends on listing volume each month |
| Shop subscription | Monthly or annual eBay Shop fee | It may be charged to a card, not the payout |
| Promoted listings | Advertising fees, standard or advanced | It is often treated as a selling cost, not marketing |
| International and regulatory fees | Extra charges on overseas sales and a regulatory operating fee | They are buried in the transaction detail |
Fees and rates are set by eBay and change.
Free calculator
eBay profit per sale calculator
Work out what a sale earns after VAT, final value fees, the per-order fee, promoted listings and postage. Change the fee rates to match your category and shop.
Per sale
- Customer pays
- £0.00
- VAT to HMRC
- £0.00
- Platform fees
- £0.00
- Landed cost
- £0.00
- Postage and advertising
- £0.00
Profit per sale
£0.00
0% margin on net sales
Price needed for a 30% margin: £0.00
An estimate for planning, not tax advice. Default fees are examples checked in October 2026; platforms change rates, so use the figures on your own fee invoices. Excludes shop subscription, insertion fees beyond your free allowance and international fees.
Get your real margins checked
Second-hand goods and VAT
The VAT margin scheme for eBay resellers
Second-hand goods are not VAT free. Once you are VAT-registered, the standard position is VAT on the full selling price. The margin scheme lets you account for VAT on the difference between what you paid and what you sold for instead. It covers second-hand goods, works of art, antiques and collectors' items.
You cannot use it for anything you were charged VAT on when you bought it, which rules out most new stock from VAT-registered suppliers. You also need a stock book tracking each item from purchase to sale, or HMRC can charge VAT on the full price. High volume, low value items can use the simpler Global Accounting scheme. See our VAT returns service for how we run both.
Margin scheme VAT, worked through
Illustrative: a VAT-registered seller resells a used item bought from a private individual, so no VAT was paid on purchase.
| Standard VAT | Margin scheme | |
|---|---|---|
| Bought for | £60 | £60 |
| Sold on eBay for (VAT inclusive) | £120 | £120 |
| VAT is worked out on | £120 sale price | £60 margin |
| VAT due (one-sixth) | £20.00 | £10.00 |
Illustrative figures only. Margin scheme VAT is one-sixth of the margin at the standard rate. Records must support every item.
VAT on eBay sales
Does eBay pay my VAT?
Usually not, if you are a UK-established seller. eBay becomes responsible for the VAT in two cases: goods sold by an overseas seller that are already in the UK, and imported consignments worth £135 or less. A UK business selling its own UK stock to UK buyers accounts for its own VAT once registered.
Registration is compulsory when your taxable turnover for the last 12 months goes over £90,000, or you expect it to in the next 30 days. It is a rolling test, not a tax year figure. Selling into the EU brings separate rules on who collects VAT. If you import stock to resell, our import accounting service covers duty and import VAT.
Also on Amazon or Shopify? Our multi-platform reconciliation brings every channel into one set of books.
eBay into Xero or QuickBooks
How we bring eBay into your books
- 01
Connect eBay to A2X
A2X splits each payout into sales, fees and refunds, posted to Xero or QuickBooks as one journal matching the deposit.
- 02
Cost your stock properly
For job lots and house clearances we agree a sensible way to spread the purchase cost across items, plus parts and refurbishment.
- 03
Reconcile and report
Payouts match the bank, VAT is right, and you get a monthly view of margin after fees and returns.
Top tips
Five tips for eBay sellers
- 01
Decide whether you are trading
Clearing out your own unwanted things is not trading. Buying to resell, making items to sell or selling regularly for profit usually is, and that decides whether tax applies.
- 02
Keep a record of what you paid for stock
Purchase receipts are what let you deduct the cost of the items you sell. For second-hand resellers using the VAT margin scheme, a stock book is a condition of using it.
- 03
Remember fees are charged on postage too
eBay's final value fee applies to the total amount of the sale, including postage. Price free-postage listings with that in mind.
- 04
Build promoted listing rates into your price
A promoted listing fee comes on top of the final value fee. Set your ad rate knowing what each sale can afford.
- 05
Separate business and personal selling
Run business sales through a business account and keep personal clear-outs apart. It makes your records cleaner and any questions from HMRC easier to answer.
From the accountant
“For second-hand resellers the VAT margin scheme can be the difference between a viable business and one that isn't. It only works with the right records from the first sale, so that is where we start.”
Key facts for 2026
Selling on eBay and tax: key facts for 2026
-
30 sales or about £1,700 (€2,000) in a calendar year is the point at which online platforms must report a seller's details and income to HMRC.
2026, rules in force since January 2025. Source: GOV.UK, Reporting rules for digital platforms
-
£1,000 of gross trading income a year can be received tax-free under the trading allowance, without telling HMRC.
2026/27 tax year. Source: GOV.UK, Tax-free allowances on property and trading income
-
£6,000 or less from selling a personal possession is generally exempt from Capital Gains Tax.
2026/27 tax year. Source: GOV.UK, Capital Gains Tax on personal possessions
-
40p per order is eBay UK's fee on orders over £10 (30p at £10 or less), on top of a final value fee of 10.9% in many categories for business sellers.
since 12 February 2026. Source: eBay, Fees for business sellers
Figures checked 9 October 2026. Rates and thresholds change, so check the source before relying on them.
Coming up
Changes coming for eBay sellers
Making Tax Digital reaches smaller sellers in 2027 and 2028, while tax thresholds stay frozen.
-
MTD for Income Tax threshold falls to £30,000
Sole traders and landlords with qualifying income over £30,000 in 2025/26 must keep digital records and send quarterly updates. Online sellers should check their gross sales, not profit, against the threshold.
Source: GOV.UK, Find out if and when you need to use MTD for Income Tax
-
Penalty points for late MTD quarterly updates begin
From the 2027/28 tax year, each late quarterly update earns a penalty point, and four points means a £200 penalty. 2026/27 is the year to get the routine right.
-
MTD for Income Tax threshold falls to £20,000
The threshold drops again, based on 2026/27 income, bringing many smaller Etsy, eBay and side-business sellers into quarterly digital reporting.
Source: GOV.UK, Find out if and when you need to use MTD for Income Tax
-
Personal Allowance stays frozen at £12,570
The Personal Allowance and the £50,270 higher rate threshold are frozen until April 2031, as is the Class 4 National Insurance Lower Profits Limit. As profits grow, more of them are taxed.
Source: GOV.UK, Maintaining Income Tax and NICs thresholds until 5 April 2031
Honest fit
An accountant for eBay sellers: who we are right for
We would rather tell you that you do not need us yet than sell you a package you will not use.
A good fit
Trading eBay businesses, new or used goods- Resellers who are, or soon will be, VAT-registered
- Used-goods sellers who want the margin scheme run properly
Probably not yet
- Clearing out personal items
- Side sellers with trading income near the £1,000 allowance
- Small sellers with one simple tax return a year
Example dashboards
What your eBay numbers look like with us
eBay alongside every other channel you sell on, with margin by product after fees, promoted listings and postage.
eCounts client dashboard Sample data
Channel P&L
1 to 31 August 2026 · margin after landed COGS
Revenue
£97,500
▲ 5.9% on July
Landed COGS
£60,110
incl. freight & duty
Gross margin
38.3%
£37,390 gross profit
Channels
5
reconciled to payouts
- Shopify
- Amazon FBA
- eBay
- Etsy
- TikTok Shop
| Channel | Revenue | Gross profit | Margin |
|---|---|---|---|
| Shopify | £38,420 | £17,290 | 45.0% |
| Amazon FBA | £28,140 | £8,720 | 31.0% |
| eBay | £15,610 | £5,310 | 34.0% |
| Etsy | £9,170 | £3,760 | 41.0% |
| TikTok Shop | £6,160 | £2,310 | 37.5% |
SKU profitability
August 2026 · per unit, net of VAT
Yoga mat 6mm on Amazon FBA is now at 7.0% margin. Landed cost rose £1.11 a unit after the July shipment's freight increase. Same product on Shopify: 30.7%.
| Product | Channel | Units | Price | Landed cost | Fees & ads | Profit / unit | Margin |
|---|---|---|---|---|---|---|---|
| Yoga mat 6mmYM-6MM-PUR | Amazon FBA | 640 | £20.83 | £11.95 | £7.42 | £1.46 | 7.0% |
| Yoga mat 6mmYM-6MM-PUR | Shopify | 410 | £23.33 | £11.95 | £4.22 | £7.16 | 30.7% |
| Cork block, pairCB-CORK-2 | Shopify | 520 | £12.49 | £3.20 | £2.95 | £6.34 | 50.8% |
| Resistance bands, set of 5RB-SET-5 | Amazon FBA | 880 | £16.66 | £4.10 | £6.38 | £6.18 | 37.1% |
| Foam roller 45cmFR-45 | eBay | 300 | £20.83 | £7.80 | £6.10 | £6.93 | 33.3% |
| Meditation cushionMC-BUCK | Etsy | 190 | £29.16 | £9.40 | £5.20 | £14.56 | 49.9% |
| Water bottle 750mlWB-750 | TikTok Shop | 410 | £12.49 | £4.60 | £2.90 | £4.99 | 40.0% |
Margin bands: under 15% red, 15 to 30% amber, over 30% green.
Example figures for illustration. Your dashboards are built from your own reconciled data. See it with your numbers.
Pricing
What an eBay accountant costs with eCounts
Most single-channel eBay businesses fit Basic. Sellers also on Amazon or Shopify usually need Growth.
Compliance
£250/mo
Sole trader. £590/mo ltd company.
- Usual fit
Basic
£350/mo
Single platform, up to 500 orders.
Growth
£700/mo
Multi-platform.
Scale
£2,500+/mo
Seven-figure operations.
Fractional FD
£4,500+/mo
Everything included.
Is it better to be a private or business seller on eBay? 
It depends on what you are doing, not what is cheaper. If you buy items to resell or sell regularly for profit, you are trading and should register as a business seller; occasional sales of your own belongings can stay on a private account.
Do I pay Capital Gains Tax on things I sell on eBay?
Usually not. Personal possessions sold for £6,000 or less are generally exempt from Capital Gains Tax, and most used items sell for less than they cost.
Do I pay tax on eBay sales in the UK?
Only if you are trading and your income is over the trading allowance. Selling your own unwanted belongings is not usually taxable, but buying or making goods to sell at a profit is trading, and gross trading income over £1,000 in a tax year means registering for Self Assessment.
Does eBay report my sales to HMRC?
Yes, if you pass the reporting thresholds. eBay sends HMRC details of sellers who make 30 or more sales of goods, or receive about £1,700 (€2,000) or more, in a calendar year. Being reported is not a tax bill in itself.
When does selling on eBay become a business?
When it shows the badges of trade, such as buying items specifically to resell at a profit, selling regularly, or improving items before sale. No single number of sales decides it.
Does the £1,000 trading allowance mean £1,000 of profit is tax free?
No, the £1,000 applies to gross trading income, before expenses. If your sales are above £1,000, you can still deduct your actual costs instead of the allowance, which usually suits resellers with real stock costs.
Are second-hand goods VAT free?
No, a VAT-registered seller pays VAT on second-hand goods. The margin scheme can reduce it by charging VAT on your margin rather than the full price, but only if you keep a stock book for each item and the goods qualify.
