Tax on Vinted sales!?

Er no, profit is your GAIN not your earnings. If you bought a dress for £50 and sold it for £20 then your income is £20 but you have not made a profit, you have made a £30 loss.

If you bought a dress for £50 and sold it for £80 then your income is £80 and your profit is £30.(ignoring additional costs of packaging etc for the sake of simplicity).

If you are buying something for the sole reason that you know you can make a profit from selling it, you're trading.

If you buy something because you genuinely like it, then decide later you don't, or it doesn't fit, or it's served it's purpose and then you sell it, you're not trading.

If you're flipping tens or hundreds of designer bags a year and try to tell HMRC you just didn't like everything you happened to buy, they're likely to take a dim view.

There is no change to tax law.

The only change is that HMRC are now tapping into Vinted’s data to help to identify people that might be trading rather than merely selling on their old stuff.

I don’t need to contact HMRC or Vinted as I have never bought, sold or indeed ever even looked at Vinted

It's a fine line @Aprilx and is all in the detail.

If someone buys something off Vinted for £5 and resells it at £10 they make a profit.

And people do grab bargains and resell, especially designer stuff.

I've seen designer bags that are identical on Vinted, being sold for a £50 difference. So someone could buy it for £100 and resell on Ebay for £150 (if they were lucky.)

You are right that someone selling their old clothes won't be paying anything, but there are people who buy and sell as traders, but look like non-traders.

As always the Guardian headline is inaccurate as it paints a distorted picture which is only made obvious in the detail later.

There is no change! The same income tax law applies as it always has done.

The difference is that online sales platforms must now liaise with tax authorities in OECD countries to provide information on traders.

<shouting>

YOU ARE ONLY SUBJECT TO INCOME TAX ON SALES IF YOU ARE TRADING WITH A VIEW TO PROFIT

CLEARING OUT YOUR WARDROBE IS NOT TRADING WITH A VIEW TO PROFIT, EVEN IF YOU DO HAPPEN TO MAKE A PROFIT

If you think you know best @Aprilxbest contact Vinted and HMRC asap because why else would the be announcing this change?

The link you left is not exactly what you said upthread.

Have a little read.

https://www.gov.uk/government/publications/selling-online-and-paying-taxes/selling-online-and-paying-taxes-information-sheet

Prove it @Aprilx
Links to HMRC would be welcome I'm sure.

If you were right, why would HMRC want people to declare profits (and Vinted to inform HMRC) because the clothes on Vinted are - by their very nature- being sold for less than the original price. They are 2nd hand.

You are wrong on this.

I have been self-employed for about 20 years and do a tax return. I think the reporting by the Guardian on this is SO irresponsible and designed to whip up indignation in support of their own political aims. And it's clearly working.

There is NOTHING NEW about this. It has ALWAYS been the case that if you are trading - buying at a lower price, selling at a higher price - that you pay tax on your PROFIT. Whether you are running a market stall, bricks and mortar store or selling on Ebay/Vinted.

It's really scary how few people do not see the difference between selling price and profit, and who can't understand that selling off stuff which your children have worn or you have used is not the same as buying items with the express intention of reselling.

You’re not a professional are you?

You only get taxed if you’re seen as “trading”. Selling stuff you purchased and used for personal use would not be considered trading. Because ultimately you aren’t making any money. Despite your weird assessment. Go google. There’s loads out there.

You won’t pay tax. This thread is ridiculous made by someone who didn’t bother to do even 39 seconds of research.

This. 👆

Is this new? I knew this years ago selling on eBay, the only difference is they are forced to pass info to HMRC

Exactly. You pay tax on the income from property that is let out. You can balance income against expenditure e.g. maintenance, accidental damage, repairs etc. Insurance can be factored in - you generally need an accountant to do this for you. If you sell you pay capital gains tax. If you generate income you are supposed to pay tax on it (less expenses) so I do not understand the OP's original point.

Profit is when you sell something for more than you paid to buy it, after taking into account all your costs to sell & post it etc.

Errr no it's not.

If you bought a dress for your own use and it cost you £50 then you sold it on Vinted for £25, you'd still be earning yourself £25.

You can't offset the cost of the item you have bought for your personal use, worn for 5 years then consider it 'selling at a loss'.

Because the alternative is you'd stop wearing it, give it away, and not make anything on it at all!

@NoWayRose Struggling to see how the POS has anything to do with personal taxation. HMRC can see your bank accounts anyway if they want to.

It's pretty simple really.

If you earn more than £1K annually, doing anything, HMRC want to know about it.

I'm self employed and submit a self assessment.
I earn very little and usually end up paying little or no tax, but they still want to see the figures.

If you do make £1K on selling anything 2nd hand, then you should be prepared to declare it, and also keep records of anything that can be deducted as your costs.

Postage materials
Phone/ internet use as part of selling
Fuel/ car trips to drop off or postage points.

For most people this won't apply, but for people selling online, as businesses, then yes it will.

No you can’t. An individual can only offset losses against profits from the same income stream. So for example if you make a loss selling one of your items but make a profit selling a different one, you may offset these two transactions. Same if you have two properties and one makes a loss and the other a profit. But you cannot offset the loss on either against salary as it is not the same type of income.

If you own 5 properties and rent them out, you'll pay income tax on the rent. Or capital gains tax if you sell? I don't get why you wouldn't pay tax on income you earn by whatever means?

Vinted now has to send your details to HMRC when you sell 30 items - naff all when when you have a couple of kids. Yes you only pay tax on profit. But just look at the Post Office scandal. You don’t have to be an off grid survivalist to not love the idea of your personal transactions being constantly fed through to the state

I run a business reselling second hand stuff, and have done for the last 20 years - all above board and I do a tax return every year.

It’s not as simple as eg buying an item for £1 and selling it for £3 = £2 profit. Each month when I do my accounts I can also claim (as expenses) for purchase of goods, postage costs, internet connection, packaging and stationary, any equipment eg printers/computers, fuel to get to the PO/parcel sending shop, Microsoft office subscription, HP instant ink subscription, any seller fees and small amount for use of home as office. When you take all that into consideration it’s actually quite difficult to make much of a profit.

It’s ironic that the first sentence in the thread is I can’t believe what I have read?

So if you’re taxed on profits, and the selling of old clothes is generally at a loss. Logically we can declare that loss on the self assessment and offset against a salary?