Selling on Whatnot can be an incredible revenue stream, especially if you can guarantee a steady supply of in-demand items for your niche. The excitement of a livestream auction, combined with the increasing number of viewers and collectors, makes the platform a viable option for a part-time side hustle, or even full-time work.
However, it’s not only the avid Pokémon card collectors or other niche customers that are watching you; His Majesty’s Revenue & Customs could set eyes on your Whatnot dealings, as well.
But don’t worry, this guide will answer all the important questions you may have, tax-wise, when you’re earning on Whatnot.
What Is Whatnot and How Does It Work in the UK?
Whatnot is a live-stream shopping platform where users auction off items in real time. Think of it as TikTok meets eBay. Sellers go live, show off their goods, like trading cards, streetwear, vintage toys, and viewers bid instantly.
As of 2025, Whatnot is fully available in the UK. In fact, around 5% of the total users are in the country. That accounts for roughly 100,000 individuals. Thanks to its growing collectibles scene and resale hype, this number continues to grow.
To sell, you’ll need to create a seller account, verify your identity, and list your items. You go live, engage with viewers, and sell things in minutes. It’s slick, fun, and yes, potentially taxable.
What is the Whatnot Fee in the UK?
While Whatnot makes it easy to sell, it doesn’t come free. The platform takes a cut of every sale you make. As of 2025, Whatnot charges an 8% commission on each transaction. On top of that, there’s a 2.9% processing fee plus a flat 30p charge, handled by Stripe.
That means for a £20 sale, you’ll lose around £2.50 in fees before even thinking about postage. And if you’re covering shipping or offering discounted rates to encourage sales, those costs come out of your pocket too.
The good news is that if you’re registered as self-employed, these platform fees can be deducted as business expenses. But for that to happen, you need to be keeping records, saving receipts, and filing correctly. Otherwise, it’s just money lost. When these tasks become a burden, it’s best if you hire the best Whatnot accountants to handle the paperwork for you and help you keep out of penalties.
How to Cash Out Whatnot in the UK?
Cashing out your earnings on Whatnot is pretty straightforward. Once you’ve made a sale and the buyer confirms they’ve received the item, Whatnot releases the payment.
You can link your UK bank account or PayPal to receive your funds. Most sellers report that payouts take 2 to 3 business days, though it may vary depending on bank processing times or weekends. If you’re using PayPal, keep in mind that fees and currency conversion charges might eat into your earnings, especially if you’re sourcing or listing in USD.
Your income from Whatnot will usually arrive in pounds, but if there’s a currency switch involved at any point, make sure to track those figures. They could impact how much you report on your Self Assessment form.
What Happens After 1000 Sales on Whatnot?
Crossing the 1,000-sale mark is a big milestone. It only means you’re likely pulling in some decent gains on your sales. But it doesn’t end there. You still have some tax responsibilities you should never overlook.
HMRC may no longer see your sales as a “just for fun” gig or a side hustle. If you’re selling regularly and hitting big numbers, they’re more likely to treat you as running a business. This means:
- You must register as self-employed (if you haven’t already)
- You’ll need to file a Self Assessment tax return every year
- You should be keeping digital records of income, fees, shipping costs, and other expenses
- You might need to consider VAT if your earnings start heading toward the £90,000 threshold
Platforms like Whatnot are also more likely to report your activity to HMRC once you hit higher sales volumes. So don’t assume you can dodge HMRC’s scrutiny, as they can monitor everything.
It’s not that worrisome, though. With proper planning and a good accountant, you can manage taxes efficiently and even claim legitimate business expenses to lower your taxable income. If you’re serious about growing your Whatnot business, this is the stage where it pays (literally) to get your financial ducks in a row.
FAQS
1. Does Whatnot send tax documents to UK sellers?
No. Whatnot doesn’t carry the responsibility of sending out formal tax forms, like P60 or payslips, as it lies on HMRC’s duties. What they do, though, is give you a summary of your annual earnings, which you can find in your seller dashboard. But remember, you may still receive notices from HMRC related to your activities on Whatnot, as the company reports your income to HMRC.
2. Will HMRC know if I don’t report Whatnot income?
Quite possibly, yes. Even if you keep your earnings to yourself or try to trim down your numbers in your report, the HMRC will still know your exact earnings and tax you accordingly. This is because Whatnot, and other platforms like Amazon, eBay, or Etsy, report their sellers’ earnings to the HMRC directly. If your income shows up but you didn’t declare it, you risk penalties or an inquiry. Even small amounts can raise flags if they’re irregular.
3. Do I have to charge VAT when selling on Whatnot?
Only if you’re VAT-registered, but most Whatnot sellers won’t be, unless they earn over £90,000 per year. If you are VAT-registered, you must charge VAT where applicable and submit VAT returns. However, you still have the option to voluntarily register for VAT even if you’re below the VATable threshold. This is a good thing if you’re looking for some ways to cash in on rebates from your expenses.
4. Can I use my personal PayPal for Whatnot sales?
Yes. Even if you have a full-time job and PAYE taxes are already being deducted from your salary, any extra income from Whatnot must still be reported to HMRC if it goes over the £1,000 trading allowance.
This side income is considered self-employment income, and you’re expected to file a Self Assessment tax return to declare it. It doesn’t matter if you’re only doing it in the evenings or on weekends. If it’s generating income, HMRC wants to know.
5. What if I only sell part-time or as a hobby?
Even hobby sales count if they generate income. If you’re under the £1,000 trading allowance, you’re usually fine. But once you cross that, or if HMRC sees signs that it’s not “just a hobby”, you’ll need to declare it. Best practice? Track everything, even if it’s part-time.
Earn Without the Hassle of Tax Responsibilities with eAccounts
Selling on any online platform is never a dull venture. Besides making your free time worthwhile, it actually pays. But, with the chance at an extra income, always comes the important tax duties you’re required to fulfill.
Don’t let paperwork, penalties, or HMRC letters ruin your side hustle. At eAccounts, we make tax simple. Whether you’re just getting started or scaling fast, we’ll handle your Self Assessment, track expenses, and make sure you’re fully compliant.
Message eAccounts today and let’s get your Whatnot income sorted — so you can focus on selling, not stressing! For more information, please get in touch today! Click one of the buttons below to either ‘Get a Quote’ for your business OR ‘Book a Meeting’ with one of our experts!
