Last updated: 16 October 2026
Who pays tax if your daughter’s jewellery sales go through your account?
The person who runs the business pays the tax, not the account holder. If your daughter makes and sells the jewellery, the income is hers, even if customers pay into your bank or PayPal account. However, since January 2024, online platforms report sellers’ income to HMRC, and the report goes in the name of the account holder. If HMRC writes to you about the sales, explain that the business is your daughter’s and provide evidence. It’s better to move the selling account into her name.
Platform reporting
Platforms such as Etsy, eBay and Vinted must report to HMRC each January if a seller has 30 or more sales or receives about £1,700 (€2,000) or more in a calendar year. HMRC uses this data to check whether income has been declared.
Is your daughter’s income taxable?
| Gross sales in the tax year | Tax position |
| Up to £1,000 | Trading allowance covers it; no need to register |
| Over £1,000 | Register for Self Assessment; deduct costs or the £1,000 allowance |
| Profit under her personal allowance | No tax due, but a return may still be needed |
| Turnover over £90,000 | VAT registration |
If she’s under 18
Children have their own personal allowance of £12,570, so a teenager selling jewellery usually pays no tax on modest profits. The settlements rules that tax parents on gifts don’t apply to a child’s own trading income.
What to do if HMRC contacts you
- Reply by the deadline, explaining who runs the business.
2. Provide evidence: her designs, purchases of materials, her communication with customers.
3. Move the platform account into her name.
4. Make sure she registers for Self Assessment if needed.
Example
Mia, 19, sells handmade jewellery on Etsy using her mother’s account. In 2026/27 sales are £6,500 and material and postage costs £2,000. Her profit is £4,500, below her personal allowance. She registers for Self Assessment, files a return showing the income, and pays no tax. Her mother tells HMRC the account was used for Mia’s business.
Selling personal possessions
Selling your own unwanted items isn’t trading, so there’s no income tax, even if reported by the platform.
Common mistakes
- Ignoring HMRC letters about platform data
- Mixing family and business income in one account
- Forgetting to register when sales exceed £1,000
- Not keeping cost records
Records to keep
Keep sales records, receipts for materials and postage, and platform statements.
Gifts back to you
If your daughter lets you keep some of the money, that’s a gift from her and not your income. Keep a simple record of transfers so the money can be traced, and avoid using the account for both your own spending and her sales once HMRC has asked about it.
Splitting the account
Open a separate account or platform login in her name. Most platforms allow the seller details to be updated, though you may need to set up a new shop for a clean record.
Frequently asked questions
Will I pay tax on her income?
Not if you can show it’s her business.
Can I claim the trading allowance for her?
No, she claims her own.
Do platforms report gifts or refunds?
They report gross sales.
Does she need a business bank account?
Not required, but helpful.
Related: tax on selling items online, digital platform guidance and tax returns for online sales.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with online selling tax advice. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 16 October 2026. It is not personal advice, so speak to an accountant about your own situation.
