Overview
- Chancellor John Healey announced in the Autumn Budget that the tax-free trading allowance will rise from £1,000 to £3,000, with the new limit applying from April 2027.
- The £3,000 threshold is measured on total receipts before expenses, so sellers must compare gross takings with their costs before choosing whether to use the allowance or claim actual expenses.
- Anyone who earns more than £3,000 in a tax year from trading activities will need to inform HMRC and will typically register for Self Assessment as a sole trader.
- HMRC already receives marketplace data under rules introduced last year, so platforms can identify active sellers and enforcement will rely on those reports as well as taxpayer returns.
- Officials estimate about 1.4 million people could benefit, reducing admin for low‑cost sellers such as Vinted, Depop and eBay users, but affected people should keep records and check whether claiming expenses is more valuable than the allowance.