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Etsy UK Tax: HMRC Reporting Rules for Sellers 2026

Last checked against Etsy's help centre and GOV.UK: 26 October 2026 · General information, not tax advice

When Etsy reports you to HMRC

Etsy says it must send UK sellers' information to HMRC under the UK rules for reporting by platform operators when (Etsy Help):

• you complete 30 or more transactions in a calendar year with physical goods, or
• you make €2,000 (circa £1,700) or more on physical goods sales after taxes and fees in a calendar year, or
• you make any sales of made-to-order digital items in a calendar year (custom files made to a buyer's specification).

That last point is specific to Etsy: a single custom digital order, such as a made-to-order portrait file, can be enough. Etsy says instant-download files that buyers get straight away are not included in the amounts it reports.

What Etsy reports

For UK individual sellers, Etsy says it reports your name, main address, date of birth, the bank account your sales are paid into, any VAT number, and any tax identification number issued. For the money side, it reports the number of transactions, the total paid to you each quarter (gross sales minus refunds, fees and Etsy-remitted taxes), and the fees, commissions or taxes it withheld or charged.

Etsy says you'll get a PDF summary of what it reported by 31 January each year. GOV.UK confirms platforms send each calendar year's information to HMRC by the following January, and must give you a copy (GOV.UK).

If Etsy asks for your details and you don't provide them in time, Etsy says it will put your shop into Vacation Mode: no new orders, and your listings won't show in search until you confirm your information. Etsy says it contacts you by email and in Shop Manager, and you update details on the Legal and tax information page.

Things you make count as trading

This is where Etsy differs from selling your old clothes. GOV.UK says you're probably trading if you sell goods you've "made, including items you make for a hobby" (GOV.UK). HMRC's own examples include making greetings cards to sell online, upcycling furniture, and digital design side hustles like downloadable wall art and pet portraits (HMRC: tax rules for selling things).

• £1,000 or less gross trading income in a tax year (6 April to 5 April), across all your side hustles: covered by the trading allowance, and you usually don't need to tell HMRC.
• Over £1,000: you need to tell HMRC by registering for Self Assessment as a sole trader, by 5 October after the tax year ends. HMRC reminded crafters of this in its November 2025 press release.

The £1,000 is gross income, before costs, and it's shared across everything: HMRC's digital design example: £200 from wall art downloads, £100 from screen print designs and £800 from pet portraits is over £1,000 in total, so that person needs to tell HMRC. Our Self Assessment guide covers the steps and deadlines.

You're taxed on profit, not sales

Once you're registered, you take off either your real allowable expenses or the £1,000 trading allowance. GOV.UK's allowable expenses include "things you buy to sell on, for example stock or raw materials" (GOV.UK: expenses), so craft materials can count. If your materials and other costs are over £1,000, expenses may give you a lower taxable profit: see trading allowance vs expenses.

Selling on eBay, Vinted or Depop too?

Each platform applies its reporting rule to its own sales, but the £1,000 trading allowance covers all of them together. Read our eBay threshold guide and Depop guide, or check all your platforms at once with the free checker.

Quick answers

Does Etsy report to HMRC?

Yes. Etsy says it must send UK sellers' details to HMRC if, in a calendar year, they complete 30 or more transactions with physical goods, make €2,000 (around £1,700) or more on physical goods after taxes and fees, or make any sales of made-to-order digital items.

Do I pay tax on things I make and sell on Etsy?

Possibly. GOV.UK says you're probably trading if you sell goods you've made, including items you make as a hobby. If your gross trading income from all side hustles is over £1,000 in a tax year, you need to tell HMRC by registering for Self Assessment. Tax is then worked out on your profit.

What happens if I don't give Etsy my tax details?

Etsy says that if you don't provide the information within the timeframe in its email, it will put your shop into Vacation Mode, so you can't receive new orders and your listings won't appear in search until you confirm your details.

Not sure where you stand?

• Use HMRC's free tool: Check if you need to tell HMRC about additional income.
• Read GOV.UK's guide to telling HMRC about income from online platforms.
• Speak to an accountant or tax adviser. If you're on a low income, the charity TaxAid gives free tax help.

Sources

• Etsy Help: What information does Etsy report for sellers in the EU, UK and Canada?
• GOV.UK: Selling goods or services on a digital platform
• GOV.UK: Check if you need to tell HMRC about income from online platforms
• HMRC: Tax rules for selling things and Christmas crafters urged to check tax rules
• GOV.UK: Tax-free allowances on property and trading income and Expenses if you're self-employed

More guides for UK online sellers

• Do You Pay Tax on Vinted? UK Rules & HMRC Limits 2026 – Own clothes vs reselling, the £1,000 allowance and the 30-sale reporting rule, in plain English.
• Vinted HMRC Form & NI Number Request: What to Do – Why Vinted is asking for your National Insurance number, the end-of-year deadline, and why it doesn't mean you owe tax.
• Vinted Tax Calculator UK: Free HMRC Limit Checker – Check your sales against the 30-sale / ~£1,700 reporting rule and the £1,000 allowance. It checks limits; it doesn't work out a tax bill.
• eBay HMRC Reporting Threshold 2026: £1,707 or 30 Sales – What eBay counts towards £1,707, what it reports, and why a report isn't a tax bill.
• Got an HMRC Letter About Vinted or eBay Sales? What to Do – A calm step-by-step: check it's genuine, work out if you were trading, and reply on time.
• Free Vinted & eBay Profit Tracker Spreadsheet (UK) – A free download with tax-year tabs, profit per item and a check against the HMRC limits.
• Trading Allowance vs Expenses: Which Should Resellers Use? – The £1,000 allowance or your real costs? Why resellers who track stock costs often come out ahead with expenses.
• Do Resellers Need to Register for Self Assessment? – When reselling counts as trading, the £1,000 rule, and the 5 October and 31 January deadlines.
• Depop HMRC Reporting: Do You Pay Tax on Depop Sales? – What Depop reports, what it asks you for, and Depop's own example of being reported but owing no tax.
• The £3,000 Side Hustle Threshold: Not in Force Yet – What was announced, what it would change, and why the £1,000 rule still applies today.