Depop Tax Guide 2026/27
By Omair SaoLast reviewed — rates for the 2026/27 tax year. See how we check our figures.
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?
If you earn through Depop as a self-employed seller, 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% + 6%
Income Tax + Class 4 NI on profit between £12,570 and £50,270
Higher rate taxpayer
40% + 2%
Income Tax + Class 4 NI on profit between £50,270 and £125,140
Trading allowance
£1,000
Tax-free — no Self Assessment below this
A Typical Year on Depop: Worked Example
Assumes a vintage reseller who sources from charity shops and kilo sales, with stock, packaging, payment processing and postage as the costs. The figures below assume you also have a £28,000 PAYE job, so your Personal Allowance is already used and every pound of profit is taxed. They are produced with the same 2026/27 tax functions as our side hustle tax calculator.
If Depop were your only income, the £12,570 Personal Allowance would cover the whole profit and no income tax would be due at this level.
What Depop Reports to HMRC
Depop is a goods marketplace, so you are excluded from its HMRC report only if you both stayed under 30 sales and received less than about €2,000 (roughly £1,700) in the calendar year; a busy month of vintage drops can exceed the sales count on its own. When you cross a threshold Depop emails a link to an in-app form asking for your National Insurance number, date of birth and bank details, and says it can restrict your account if it is left incomplete. The previous calendar year's figures go to HMRC by 31 January and Depop gives you the same data. Removing its selling fee changed nothing here: the report still shows gross sales and transaction counts, and being reported does not itself mean tax is due.
Getting Started: Staying Compliant from Day One
- 1
Work out whether you are trading: reselling charity-shop finds at a mark-up is trading; selling last year's wardrobe is not.
- 2
If trading, register for Self Assessment when gross sales pass the £1,000 trading allowance, and no later than 5 October following the end of that tax year.
- 3
Complete Depop's tax information form as soon as it arrives so the account is not restricted mid-season.
- 4
Export your sales history from the app regularly and keep it with receipts for stock, poly mailers and labels; Depop Payments processing fees are deductible too.
- 5
Keep money from selling personal pieces separate in your records so it does not inflate your trading income.
Common Mistakes Depop Sellers Make
- Sourcing stock for resale but describing yourself to HMRC as a hobby seller, which is the wrong way round.
- Counting the buyer-paid Depop fee as your expense; only fees actually taken from your payout are yours to claim.
- Assuming tax only starts at the personal allowance of £12,570 when a part-time job has already used it up.
Allowable Expense Deductions for Depop
These expenses reduce your taxable profit. Keep receipts for all claims.
Earning and Tax Tips for Depop Sellers
- 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.
Official Sources
The rules on this page come from the following official pages and were checked on 25 September 2026. Read how we check our figures.
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 applies from April 2026 if your sole trader income is over £50,000 — what it means for you.