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Whatnot UK Tax: Do Sellers Pay Tax and Does It Tell HMRC?

Checked 29 Oct 2026 against GOV.UK and Whatnot's help centre · General information, not tax advice

Budget 2026 update (checked 29 October 2026): the government announced at Budget 2026 that the trading allowance will rise from £1,000 to £3,000, and that the Self Assessment reporting threshold for trading income will also rise to £3,000, from 6 April 2027, subject to Finance Bill 2026-27 (GOV.UK: Budget 2026 overview of tax legislation and rates, section 1.5). For the current tax year (6 April 2026 to 5 April 2027) and earlier years, the £1,000 figures on this page still apply. Our free HMRC limit checker now has a tax-year switch: check your sales against £1,000 for 2026/27 or the announced £3,000 for 2027/28. For a rough tax figure, try our reseller tax estimate. See what the £3,000 change means. General information, not tax advice.

The short answer: Whatnot passes UK sellers' details to HMRC through the Irish tax authorities, but being reported isn't a tax bill. You only owe tax if you're trading (buying or making things to sell at a profit) or making a taxable gain. If you're trading, you pay tax on your profit, and if your gross trading income for the tax year is £1,000 or less, the trading allowance means you usually don't need to tell HMRC (GOV.UK).

Check where your sales stand – free

Does Whatnot report to HMRC?

Yes, but by a slightly unusual route. Since 2024, UK rules have required digital platforms to collect sellers' details and report their income to HMRC each January (GOV.UK: selling goods or services on a digital platform). Whatnot's help centre says that "while Whatnot Ireland is not established in the UK, Whatnot is now required to report information on UK Sellers to the Irish tax authorities, who will then exchange this information with HM Revenue and Customs" (Whatnot: Reporting Rules for Digital Platforms).

What gets shared: Whatnot lists your name, address, tax identification number (for UK individuals, your National Insurance number), date of birth, your total sales by quarter, the bank account you're paid into, and the fees Whatnot charged.
The threshold: under the UK rules, GOV.UK says your details won't be reported if you make fewer than 30 sales of goods in a calendar year and receive less than €2,000 (about £1,700). Whatnot's page gives the same 30 sales / €2,000 figures for EU sellers, but we couldn't find a Whatnot page that states the threshold it uses for UK sellers, so treat it as unconfirmed for Whatnot specifically.
Your copy: Whatnot says qualifying international sellers can view and download a copy of the information reported in Seller Hub once it's been filed.

The reports cover the calendar year (January to December). Tax works on the tax year (6 April to 5 April), so you can't copy the figure straight onto a tax return. The same rules apply to eBay, Vinted and Depop: see eBay's HMRC reporting threshold for how it works on another platform.

Being reported isn't the same as owing tax

GOV.UK is clear: "A platform reporting your details to HMRC does not automatically mean you owe tax." To pay tax on what you sell, you must be trading or making a capital gain, and you're unlikely to pay tax if you sell personal items from your home (GOV.UK).

Live selling: trading or clearing out?

Whatnot's own UK tax guide puts it simply: if you buy goods for resale or make goods to sell, "what you are doing is likely to be seen as trading" and you'll pay Income Tax on your profits, unlike "just selling some unwanted items that have been lying around your home" (Whatnot Tax guide – UK).

Likely trading: buying sealed packs, singles, sneakers or vintage to resell in shows; running regular breaks; sourcing stock to flip.
Usually not trading: selling off your own old collection or clothes you bought for yourself. A single valuable item sold at a gain could still be a Capital Gains Tax question: see selling personal items and the £6,000 rule.

HMRC uses the "badges of trade" to decide. Our guide walks through all nine with reseller examples: am I trading?

The trading allowance: £1,000 now, £3,000 announced

If your gross trading income (sales before costs) from all sources is £1,000 or less in a tax year, you usually don't need to tell HMRC. Over £1,000, you need to register for Self Assessment (GOV.UK: tax-free allowances on property and trading income). The £1,000 counts all your trading together: Whatnot, eBay, Vinted, car boots and the rest.

At Budget 2026 (28 October 2026) the government announced that the trading allowance will rise from £1,000 to £3,000, and the trading income reporting threshold for Self Assessment will also rise to £3,000, from 6 April 2027, subject to Finance Bill 2026-27 (GOV.UK: Budget 2026 overview of tax legislation and rates, section 1.5). For the current tax year (6 April 2026 to 5 April 2027) the £1,000 figure still applies. Read more about the trading allowance rising to £3,000.

Whatnot fees, postage and stock as expenses

Tax is on your profit. Whatnot's UK tax guide says you can take away business expenses and purchase costs, such as the products you resell, packing materials and Whatnot's fees, but not things you use privately. It also says all your trading sales count, including cash sales off the platform (Whatnot Tax guide – UK; GOV.UK: expenses if you're self-employed).

On 29 October 2026, Whatnot's UK fees page listed a standard commission of 6.67% of the item price (4% for Coins), lower in higher sales tiers, with all rates subject to VAT, plus payment processing of 2.42% of the total order value and £0.25 per transaction, plus VAT (Whatnot: seller fees). Whatnot shows the fees on each order in Seller Hub, so keep those records.

You can use either the £1,000 trading allowance or your actual expenses, not both. If you buy stock, real costs often beat £1,000: see trading allowance vs expenses, and for a rough tax figure try our side hustle tax calculator.

VAT: the £90,000 line

You must register for VAT if your total taxable turnover for the last 12 months goes over £90,000, or you expect it to go over £90,000 in the next 30 days (GOV.UK: when to register for VAT). Whatnot's UK tax guide notes this counts everything you sell, including on other apps, and applies even to second-hand goods. If you are VAT-registered, Whatnot says to add your VAT number to your account, and it won't then charge VAT on its fees; you account for it under the reverse charge instead (Whatnot Tax guide – UK).

Looking ahead: Budget 2026 announced that, from October 2027, online marketplaces will collect VAT on sales by UK VAT-registered businesses and other UK businesses over a per-platform sales threshold of £90,000. The government says it won't apply to personal sales, second-hand goods or business-to-business sales, and some details, including the threshold and start date, will be set in secondary legislation (GOV.UK: Budget 2026 overview, section 1.55).

What to keep for Self Assessment

Your Whatnot order history and fee breakdowns for each tax year (6 April to 5 April), plus your copy of the platform report.
Receipts for stock, packaging and postage.
Your sales from every other platform: the £1,000 and VAT tests are across everything.

If you're over £1,000, the deadlines are in our Self Assessment guide for resellers (GOV.UK: register for Self Assessment). Our free profit tracker spreadsheet works for Whatnot sales too.

SideLedger is independent and not affiliated with Whatnot. Platform details can change: check Whatnot's own help pages for the latest.

Quick answers

Does Whatnot report UK sellers to HMRC?

Yes, indirectly. Whatnot's help centre says Whatnot Ireland isn't established in the UK, so it reports information on UK sellers to the Irish tax authorities, who then exchange it with HMRC. Being reported doesn't mean you owe tax.

Do I pay tax on Whatnot sales in the UK?

Only if you're trading (for example buying cards, collectibles or clothes to resell) or making a taxable capital gain. If you're trading, you pay tax on your profit, not your sales, and the £1,000 trading allowance can cover small amounts. Selling your own unwanted things usually isn't trading.

Can I claim Whatnot fees as an expense?

If you use actual expenses rather than the trading allowance, Whatnot's own UK tax guide gives Whatnot's fees and packing materials as examples of costs you may be able to deduct, along with the stock you resell. You can't use the trading allowance and actual expenses together.

Do I need to register for VAT to sell on Whatnot?

Only if your taxable turnover goes over £90,000 in the last 12 months, or you expect it to in the next 30 days. That's across everything you sell, not just Whatnot. Most part-time sellers are well below it.

Do buyers pay tax on Whatnot in the UK?

Buyers don't pay Income Tax on things they buy. Whatnot's UK tax guide says that if a seller has to charge VAT, the price shown must already include it, so there's no separate tax for a UK buyer to add.

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.

Selling on Whatnot and elsewhere? Our free checker adds up your sales across platforms against the reporting rules and the trading allowance, with a 2026/27 (£1,000) or 2027/28 (£3,000, announced) switch. No sign-up, and nothing you type leaves your device.

Open the free HMRC limit checker Join the SideLedger waitlist

Sources

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 trading allowance, with a 2026/27 or 2027/28 tax-year switch. It checks limits, not your 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.
Etsy UK Tax: HMRC Reporting Rules for Sellers 2026 – When Etsy reports you to HMRC, and why things you make to sell usually count as trading.
Trading Allowance Rises to £3,000: What Budget 2026 Changed – The trading allowance is due to rise from £1,000 to £3,000 from 6 April 2027, subject to Finance Bill. When it starts, who it helps, and why £1,000 still applies until then.
Why Is eBay Asking for My National Insurance Number? – Why eBay wants your NI number, what happens if you don't give it, and why giving it doesn't mean you owe tax.
Selling Personal Items on eBay: Do You Pay Tax? (UK) – Clear-outs vs trading, the £6,000 Capital Gains Tax rule for valuable items, and why eBay may still report you.
Facebook Marketplace & HMRC: Do They Report You? – What we could and couldn't confirm about Facebook Marketplace reporting, what Gumtree says, and why the tax rules are the same either way.
Am I Trading? HMRC's Badges of Trade for Resellers – HMRC's nine badges of trade with Vinted and eBay examples, plus car boot sales: when selling becomes trading.
Vinted Pro vs Personal Account: Does It Change Tax? – What Vinted says about Pro and standard accounts, what HMRC actually looks at, and why switching account type isn't what decides tax.
Side Hustle Tax Calculator UK: How Much Tax Will I Pay? – A rough estimate of the extra Income Tax and Class 4 National Insurance on your reselling profit, comparing the trading allowance with your real costs. England, Wales and NI.
Telling HMRC About Past Online Sales: Disclosure Guide – Realised you should have declared past reselling income? The routes GOV.UK describes, step by step, and how far back it goes.
MTD for Resellers: Do eBay & Vinted Sellers Need It? – Most sellers won't need Making Tax Digital for Income Tax. The £50,000, £30,000 and £20,000 thresholds, and why they count sales, not profit.
TikTok Shop UK Tax: When Sellers Pay and What HMRC Sees – TikTok Shop's 30 orders or €2,000 reporting rule, where to find your MRDP report, and why being reported isn't the same as owing tax.

This is general information, not tax advice. Whether you owe tax depends on your circumstances. Check GOV.UK or speak to an accountant about your own situation. SideLedger is not affiliated with HMRC, Vinted, eBay or Depop.