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Selling online in the UK: platforms and rules explained

By FastBuySale Newsroom · 9 Nov 2026 · 6h ago

Selling online in the UK today

Millions of people in the UK sell online, from clearing out wardrobes on resale apps to running small brands with their own websites. The rules differ for private sellers and traders. Private sellers have fewer obligations; traders have duties under consumer law and must report profits for tax. This guide explains the main rules using HMRC guidance on digital platforms and the consumer protection framework. It is general information, not legal advice.

Private seller or trader?

A private seller sells their own personal possessions occasionally. A trader sells goods or services as a business, such as buying stock to resell, making products to sell or selling regularly with the aim of profit. HMRC's badges of trade, such as frequency, profit motive and how items were acquired, help decide for tax purposes. Consumer law uses a similar idea: if you are acting for purposes relating to your business, you are a trader.

Where to sell

Marketplaces and resale apps bring buyers and handle payments but charge fees and set their own rules. Social media selling suits makers and creators with an audience. Your own website gives control but requires you to attract visitors and comply with rules on payments, cookies and privacy. Many sellers combine channels.

Tax: the trading allowance and Self Assessment

If you are trading, gross trading income of £1,000 or less in a tax year is covered by the trading allowance, and you do not need to tell HMRC. Above that, you generally register for Self Assessment by 5 October after the end of the tax year and report profits. Income Tax is charged at your marginal rate, and Class 4 National Insurance applies to self-employed profits above £12,570, at 6% up to £50,270 and 2% above for 2026 to 2027.

Digital platform reporting

Since 1 January 2024, digital platforms must collect and report information about sellers to HMRC. Sellers who make fewer than 30 sales of goods and earn less than about £1,700 a year are generally excluded. The first reports were sent in early 2025. Reporting is not a tax: it gives HMRC information to check that trading income is declared.

VAT

VAT registration is compulsory once your taxable turnover exceeds £90,000 in any rolling 12-month period, or you expect it to exceed that in the next 30 days. Selling to consumers in Northern Ireland and the EU, or importing goods, involves extra VAT rules. Marketplaces are responsible for VAT on some sales made by overseas sellers through them.

Consumer rights when you sell as a trader

The Consumer Contracts Regulations require traders selling at a distance to give clear information before the contract, including their identity and address, the main characteristics of the goods, the total price including taxes and delivery, delivery arrangements and the cancellation rights. Consumers usually have 14 days from receiving goods to cancel without giving a reason, and a further 14 days to return them. Traders must refund within 14 days of receiving the goods back or evidence of return. Exceptions include personalised goods, perishable items and sealed hygiene products that have been unsealed.

Under the Consumer Rights Act 2015, goods sold by traders must be of satisfactory quality, fit for purpose and as described. Consumers have a short-term right to reject faulty goods within 30 days, and remedies such as repair, replacement or refund after that.

Private sellers

Private sellers do not have to offer a 14-day cancellation period, but they must describe items accurately. Items must match the description, and misdescribing an item can lead to a claim. Many resale platforms have their own buyer protection schemes that apply regardless.

Fake reviews and pricing

The Digital Markets, Competition and Consumers Act 2024 bans fake reviews and concealed incentivised reviews, and gives the Competition and Markets Authority powers to fine businesses directly. Drip pricing, where mandatory fees are hidden until late in the buying process, is also prohibited. Show the full price upfront.

Product safety

New products sold to UK consumers must be safe. Specific rules apply to toys, cosmetics, electrical goods and children's products, often including marking and labelling requirements. If you import goods to resell, you may be treated as the importer and take on responsibilities for safety and labelling.

Worked example: a small online shop

Ella sells handmade jewellery through her website and a marketplace. In 2026 to 2027 her sales are £14,000. Materials cost £3,500, fees £1,400, postage £1,100 and website costs £300, giving a profit of £7,700. She has a part-time job paying £18,000. Her profit is taxed at 20%, so Income Tax is about £1,540. Her self-employed profit is below £12,570, so no Class 4 National Insurance is due. She offers a 14-day cancellation period for non-personalised items and explains clearly that personalised pieces cannot be returned unless faulty.

Worked example: decluttering

Raj sells 35 of his own old items on a resale app and receives £1,200. The platform reports his details to HMRC because he passed 30 sales. As he sold personal possessions for less than he paid, he is not trading and owes no tax.

Records

Keep records of sales, invoices, receipts, fees and postage for at least five years after the 31 January submission deadline. Good records support your tax return and help resolve disputes with customers.

Data protection

If you collect customers' personal data, the UK GDPR and Data Protection Act 2018 apply. Use the data only for the purposes customers expect, keep it secure and publish a privacy notice on your website.

Selling services online

If you sell services online, such as design, tutoring or coaching, consumer law also applies when your customers are consumers. They usually have 14 days to cancel a service contract, and if they ask you to start within that period, they may have to pay for the service provided up to cancellation. Explain this clearly at the time of booking.

Postage and delivery

Traders are responsible for goods until they are delivered to the consumer, so if a parcel is lost in the post, the trader generally has to resolve it. Use tracked services for valuable items. Private sellers should follow the rules of the platform they use, which often require proof of postage.

Marketplace policies

Marketplaces have their own rules on listing accuracy, prohibited items, dispatch times and returns, and they can suspend accounts for breaches. Many also run buyer protection schemes that can refund buyers in disputes. Keep photos of items before sending and proof of postage.

Selling to customers abroad

Exporting goods from Great Britain involves customs declarations, and buyers abroad may pay import taxes. Shipping to the EU requires care with VAT rules that apply to imports there. Some marketplaces handle these requirements for sellers; check before listing internationally.

Pricing and margins

Before listing, work out your margin after platform fees, payment fees, postage, packaging and the cost of the item. Small fees add up, and low-priced items can leave little profit after postage. Bundling items or setting minimum order values can help.

Business names and registration

Sole traders can trade under their own name or a business name, as long as it is not misleading or already registered as a trademark by someone else. Limited companies register with Companies House. Your website or listings must show your business name and a geographic address if you are a trader.

Common mistakes

- Thinking platform reporting means tax is due on personal sales.

- Not offering the 14-day cancellation period as a trader.

- Hiding delivery or other charges until checkout.

- Selling products without checking safety rules.

- Not tracking income across all platforms against the £1,000 allowance.

Starter checklist

- Decide whether you are trading.

- Set up records for income and costs.

- Write clear listings with total prices and delivery details.

- Publish returns and cancellation terms if you are a trader.

- Register for Self Assessment if needed.

The percentage calculator on this site can help work out fees and margins. This article is general information about UK law and is not legal or tax advice.

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