Do I Have to Pay Tax on My Etsy Sales?
- Maria
- 5 days ago
- 2 min read
Etsy is a brilliant place to sell your handmade creations, vintage finds, and craft supplies — but with HMRC now receiving data directly from platforms like Etsy, it’s important to know when your hobby becomes a business in the eyes of the tax office.
Etsy, like eBay, Vinted, and Amazon, falls under the new DAC7 reporting rules. That means Etsy will share your seller information with HMRC if you’ve had more than 30 sales or earned over about £1,740 (€2,000) in a calendar year. The data includes your name, address, total sales, and any fees. So even if you haven’t registered yet, HMRC may already see your sales numbers.
If your total trading income (before expenses) across all platforms is under £1,000 per tax year, you can use the Trading Allowance — which means you don’t need to register or pay tax on it. But once you go above £1,000, you’ll need to complete a Self Assessment tax return and report your earnings, even if your actual profit after costs is small.
So what should you do? Keep it simple.Track your Etsy income, note your costs (materials, shipping, Etsy fees, etc.), and save your records. At the end of the tax year, you’ll be ready, or better still, let Sole Seller Tax handle it for you. We take your Etsy sales data and return a clear, human-checked summary showing exactly what’s taxable and what’s not.
Etsy lets you express your creativity — Sole Seller Tax keeps it stress-free when it’s time to deal with HMRC.
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