Depop Tax UK 2025/26: What You Owe HMRC
Depop is the UK-founded fashion resale platform that's particularly common with Gen Z sellers, and the tax confusion is identical to Vinted's: the line between "selling my own old stuff" (not taxable) and "buying or making things to flip" (taxable trading) is what HMRC cares about. This page breaks it down for Depop specifically.
The two types of Depop seller, taxed differently
Type A, Casual closet seller. You're selling your own clothes. Even if you cross 30 sales or £1,735, this is not taxable income because it's disposal of personal possessions for less than you originally paid. No Self Assessment needed. Keep records of what was sold.
Type B, Reseller / curator / maker. You source vintage, do thrift hauls, restore items, make tie-dye, do upcycling, or buy wholesale. This is trading. Your gross sales are subject to the £1,000 trading allowance, and beyond that, income tax and Class 4 NI.
When does casual become trading?
HMRC uses "badges of trade" rather than a hard rule. Strong indicators you've crossed into trading:
- You source items specifically intending to resell them.
- Your sales pattern is consistent (weekly, monthly) rather than seasonal clear-outs.
- You modify or restore items to add value.
- You hold inventory beyond what you'd reasonably own personally.
Depop fees and what counts as gross
Depop charges 10% per sale (was reduced from earlier rates) plus payment processing fees. Your gross sales for tax purposes are what the buyer paid, before Depop's cut. Depop fees are an allowable expense if you claim actual expenses, or absorbed into the £1,000 allowance if you use that.
Depop reporting to HMRC
Depop is a reportable platform. From 1 January 2024 onwards, sellers crossing 30 transactions or €2,000 (~£1,735) in a calendar year have their data shared with HMRC. The first batch of data covered 2024 and was filed by 31 January 2025.
Worked examples for Depop
| Situation | Tax owed |
|---|---|
| Sold £900 of own old clothes | £0 (under trading allowance, but technically you're not even trading) |
| Sold £1,800 of own old clothes (50 sales) | £0, not trading. HMRC may have your data; respond to nudge letters with explanation. |
| Charity shop hauls flipped for £2,500/yr, basic rate, employed | ~£300 + minimal NI |
| Vintage curator, £8,000 gross, £2,000 sourcing+fees, basic rate | ~£1,000 |
FAQs
I'm a student. Different rules?
No different rules. But if you're earning under the £12,570 personal allowance overall, you'll likely owe £0 income tax even if trading. You may still need to file Self Assessment if your trading gross is over £1,000.
I bulk-bought a clearance lot from a wholesaler. Trading?
Yes, clear case of buying to resell. Track sourcing costs as expenses.
Depop took payment in early 2026 for a sale I made in late 2025. Which tax year?
Cash basis (default for sole traders): the year the money was received. Accruals basis: the year of the sale. Most side hustlers use cash basis, it's simpler.