A guide, not advice. This explains the general rules for sole traders in England, Wales & Northern Ireland and can't cover every situation (Scottish bands, partnerships, limited companies, VAT, student loans). Figures are for the 2025/26 tax year (the return due by 31 January 2027), based on published gov.uk rules; 2026/27 Income Tax and Class 4 figures are the same. Always check gov.uk or a qualified accountant before you file.

Budget 2026 news: the trading allowance is due to rise from £1,000 to £3,000 from 6 April 2027 (the 2027/28 tax year). It doesn't change the 2025/26 or 2026/27 returns. What it means for sellers.

The short answer

Depop has two very different kinds of seller, and the tax answer is different for each:

Plenty of Depop sellers start as the first kind and drift into the second. HMRC's own example describes exactly that: "After earning some money from selling unwanted clothes, you start buying items from car boot sales and charity shops ... with the intention of selling them for more money than you paid for them. This is something you do regularly." That person may need to tell HMRC.

Quick check: your Depop year

Only the items you bought or made to sell. Leave out your own old clothes.

Depop's processing fee includes £0.30 per order.

Your Depop profit is taxed on top of it.

Runs in your browser. Nothing you type is sent or stored. For a printable record and other platforms, use the full calculator.

Own clothes or reselling? Four questions

HMRC looks at why you got the item, not how often you sell or which app you use. For each thing you sell, ask:

Many people have a mixed shop. That's fine: count only the resold or made items as trading income, and keep a note of which is which.

£1,000 of what? Sales, not profit

The trading allowance is tested against gross trading income: what buyers paid you, including any postage they paid you, before Depop's fees and before what you paid for the stock. A reseller who takes £1,300 from items that cost £700 is over the limit, though they only made £600. Add other trading together too (a Vinted or eBay resale side, a market stall): there's one £1,000 allowance per person, not one per app.

Depop's fees (UK)

Depop dropped its 10% selling fee for UK sellers in 2024. According to Depop's UK fee page (last checked 25 October 2026), UK sellers now pay:

So a reseller taking £8,000 from 300 orders pays about £322 in processing (£232 + 300 × £0.30), plus any Boost fees. Those are allowable costs. Depop's fees can change, so check your own sales history for the real figures.

What Depop resellers can claim

If your real costs are more than £1,000, claim them instead of the allowance. For resellers they usually are, because the stock itself is a cost:

Not allowable: your own time, and clothes you keep and wear yourself. And it's one or the other: real costs or the £1,000 allowance, not both.

Four Depop sellers, worked through

Illustrative, using 2025/26 rules and the fee model above:

A full-time reseller with no other income pays Income Tax only on profit above the £12,570 Personal Allowance, plus Class 4 National Insurance at 6% on profit between £12,570 and £50,270. On £30,000 of sales and £14,800 profit that's about £446 Income Tax and £133.80 Class 4.

"Depop asked for my National Insurance number"

Since 1 January 2024, platforms including Depop must collect sellers' details (name, address, date of birth, National Insurance number) and report to HMRC any seller who makes 30 or more sales or receives about £1,700 (€2,000) or more in a calendar year. The first reports, for 2024, went to HMRC by 31 January 2025.

HMRC's guidance says a report "does not automatically mean that you owe tax". Three things to know about it:

Had a letter already? See what to do if HMRC writes to you about your online sales, including how to put earlier years right.

Designer pieces over £6,000

A personal possession sold for more than £6,000 (or a set sold together, like a matching collection) may bring in Capital Gains Tax, even though it's not trading. Few Depop sales get near that, but a high-end bag or watch might. See gov.uk's Capital Gains Tax on personal possessions guidance if that's you.

If you're over £1,000: what to do next

Keeping records

Resellers win or lose at tax time on one thing: knowing what each item cost. Depop's sales history shows what you sold for; only you know what you paid. Note the cost when you list each item (a column in a spreadsheet, or in the listing's private notes), and split the year at 5 April. If you'd rather not build that yourself, our bookkeeping spreadsheet for Etsy, eBay, Vinted and Depop sellers (£12.99, Excel or Google Sheets) works out each sale's Depop fee with the same fee model as this page and totals your tax year. It's made by the same people as this site, and it's optional: the calculator and guides stay free.

Prefer to ask an AI? Our free Seller Skills pack for ChatGPT, Gemini or Claude sorts a year of sales into tax-year totals and flags whether you look like a trader, writes listings and drafts buyer replies. The Pro pack (£12) adds pricing after fees per item, dispute evidence, and help with an HMRC letter. Both give estimates, not advice.

The same trading test and £1,000 allowance apply on every platform. See also our Vinted, eBay and Etsy tax guides.

Sources (checked 31 October 2026)