Depop Tax Guide 2026/27
Last updated: March 2026 — Rates for the 2026/27 tax year
Depop is a fashion-focused marketplace popular with younger sellers in the UK, particularly for vintage, streetwear, and Y2K fashion. It combines social media features with e-commerce, making it feel like a cross between Instagram and a shop.
How Much Tax Will You Pay on Depop Income?
As a self-employed Depop worker you pay Income Tax and Class 4 National Insurance on your profits — not your gross earnings. The £1,000 trading allowance means the first £1,000 of income is tax-free. Above that, you deduct either the allowance or your actual expenses, whichever is higher, to arrive at your taxable profit. Use our side hustle tax calculator to get an instant estimate for 2026/27.
Basic rate taxpayer
20% + 9%
Income Tax + Class 4 NI on profit above £12,570
Higher rate taxpayer
40% + 9%
On profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
Allowable Expense Deductions for Depop
These expenses reduce your taxable profit. Keep receipts for all claims.
Tax Tips for Depop Workers
- Depop's algorithm favours active sellers — refresh your listings regularly and post new items frequently to stay visible.
- High-quality, well-styled photos get significantly more engagement. Use natural light and consistent backgrounds.
- If you are buying from charity shops to resell, this is trading income. Track your purchase costs as expenses.
- Build a following by engaging with other sellers and using relevant hashtags and descriptions.
Frequently Asked Questions
Do I need to pay tax on Depop sales?▾
If you are selling your own personal clothes, you generally do not owe tax. If you are buying items to resell for profit, this is trading income. You can earn up to £1,000 from trading before you need to register as self-employed. Above £1,000, you must register with HMRC and file a Self Assessment return.
Has Depop removed its selling fees?▾
Yes. As of mid-2024, Depop removed its 10% selling fee for UK sellers. Buyers now pay a small fee instead. You will still pay payment processing fees (approximately 2.9% + £0.30 per transaction). This makes Depop one of the cheapest platforms for UK sellers.
Does Depop report my sales to HMRC?▾
Yes. Under OECD reporting rules, Depop is required to share seller information with HMRC if you exceed the reporting thresholds (30 transactions or €2,000 in a calendar year). This is purely information sharing and does not automatically mean you owe tax.
Related Tools & Guides
Benefits Calculator
Low Depop earnings? Check Universal Credit and other benefit entitlements.
Take-Home Pay Calculator
Also have a PAYE job? See your combined income after all deductions.
Side Hustle Tax Guide 2026
Complete guide to Self Assessment, the trading allowance, and Class 4 NI.
Making Tax Digital for Side Hustles
MTD for Income Tax starts April 2026 — what it means for you.