Of all the side incomes we look at on Compound Story, this is the one almost every family can start this weekend. Kids grow out of clothes in months. Toys, prams, baby gear and the coat you bought and never wore all have a second-hand value. Listing them on Vinted, eBay or Facebook Marketplace turns clutter into cash, and frees up space at the same time.
It’s not truly passive, and it won’t replace a salary. But a steady clear-out can pay for a family day out or top up your emergency fund every month. The question people worry about most is tax, so we’ll cover what to sell, how to sell it well, and when HMRC actually takes an interest.
What sells well
The things that move fastest tend to be the things families buy new and use briefly:
| Category | Why it sells | Tip |
|---|---|---|
| Children’s clothes | Outgrown, not worn out | Sell in age bundles, like “girls 2–3, 12 items” |
| Baby and toddler gear | Expensive new, short life | Clean it well and include the box if you have it |
| Branded adult clothes | Buyers search by brand | Put the brand and size in the title |
| Toys and games | Steady demand before birthdays and Christmas | Check every piece is there and say so |
| Books and DVDs | Cheap to post, easy to list | Bundle by series or age |
How to sell well
Take clear photos in daylight. A plain background and three or four angles do more for your price than anything else. Show any marks honestly; it saves returns and bad reviews.
Write the title buyers would type. Brand, item, size and colour, in that order. “Next girls’ raincoat age 4–5 navy” beats “lovely coat”.
Price with sold listings, not live ones. On eBay you can filter by sold items to see what things actually went for. On Vinted, look at similar items and price slightly below the busiest cluster for a quick sale.
Bundle the small stuff. A single £2 T-shirt is barely worth posting. Ten of them in one parcel is.
Make it a routine. Fifteen minutes on a Sunday listing whatever has been outgrown that week keeps the pile from building up, and keeps money trickling in.
Good to know: Since 2024, Vinted, eBay, Etsy and similar sites have had to share seller information with HMRC once you make 30 sales, or roughly £1,700 (€2,000) of sales, in a calendar year. That’s a reporting rule. It doesn’t create a new tax, and it doesn’t mean you owe anything.
When HMRC actually cares
The rules haven’t changed, only how much HMRC can see. What matters is whether you’re clearing out your own things or trading.
Selling your own things: usually no tax
If you’re selling personal belongings you bought to use, and you’re getting less for them than you paid, that isn’t trading. You don’t pay income tax on it and you don’t need to tell HMRC, even if a platform reports your sales. Selling 40 of your children’s outgrown outfits doesn’t turn you into a business.
The main exception is a single item that sells for more than £6,000, such as a piece of jewellery, a watch or a painting. That may be subject to Capital Gains Tax, so check the rules before you sell.
Buying to resell: that’s trading
If you buy things in order to sell them for a profit, like picking up bargains at car boot sales to list online or making items to sell, HMRC sees that as trading. Signs you’ve crossed the line include buying with the plan to resell, selling regularly, improving or repairing items to get more for them, and running it like a small business.
When you’re trading, the £1,000 trading allowance applies. If your total trading income for the tax year is £1,000 or less, before any costs, you don’t need to tell HMRC or pay tax on it. Above that, you need to register for Self Assessment and declare it. You can then either take the £1,000 allowance off your income or deduct your actual costs, whichever is better.
The deadline to know
If you need to file a tax return for the first time, you must register for Self Assessment by 5 October after the end of the tax year. For anything you earned between April 2025 and April 2026, that’s 5 October 2026. Our UK tax calculator shows how extra income would affect your take-home pay.
Keep simple records
Even if you’re only clearing out, it’s worth keeping a note of what you sold, roughly when you bought it and what you paid. If HMRC ever writes to ask about a platform report, a short list showing these were personal belongings sold at a loss is usually all you need.
If you are trading, keep receipts for what you buy, postage and packaging, and platform fees. Those costs reduce your profit, and it’s far easier to collect them as you go than to reconstruct them later.
Where to put the money
The money you make from selling is easy to spend without noticing. Moving it straight into savings each time a sale lands is a simple way to make it count. Put it towards your emergency fund, or into a Junior ISA for the children whose clothes you’re selling.
The short version
Selling what you no longer need is one of the easiest side incomes there is, and for most families it’s completely tax-free. Platforms tell HMRC once you pass 30 sales or about £1,700 a year, but that report isn’t a bill. Tax only comes into it if you buy things to resell and earn more than £1,000 a year from it, or sell a single item for over £6,000. Take good photos, bundle the small stuff, and save what you make.
Common questions
Do I have to pay tax if I sell more than 30 items on Vinted?
Not because of the number of items. Thirty sales, or about £1,700 in a calendar year, is when platforms must share your details with HMRC. Whether you owe tax depends on whether you're trading, not how many things you sell.
What is the £1,000 trading allowance?
It lets you earn up to £1,000 a tax year from trading, such as buying and reselling, without telling HMRC. It's based on your income before costs, and it covers all your trading activity added together.
Do I pay tax when I sell my old clothes?
Usually not. Selling your own personal belongings, normally for less than you paid, isn't trading. The main exception is a single item that sells for more than £6,000, which may fall under Capital Gains Tax.
What's the deadline to register for Self Assessment?
If you need to file a tax return for the first time, you must register by 5 October after the end of the tax year. For income in the 2025/26 tax year, that's 5 October 2026.
This article is general information, not personal financial advice. Your situation is your own, so check the details for yourself or speak to a regulated adviser before making big decisions. Where investments are mentioned, their value can go down as well as up.
