Tax on Vinted sales!?

*vinted not bunted

Do you know anything about tax? When selling properties (apart from main residence), your pay tax.

Also you're wrong about how bunted is taxing people.

A previous poster — I think it was Flickersy — made a list of indicators. Come to think of it, those indicators are the same checks I make when I'm deciding whether to complain about being sent a broken but fixable item, or simply to accept it without making a fuss.

For example, I bought a coat and it turned out to have a broken zip, but I decided from the seller's other items that s/he it was another parent listing stuff in a hurry, while trying to raise money for the next size. I just bought a new zip and put it in.

Tax is charged on income from additional properties.

This refers to profit made from selling on ebay, vinted etc. If you're selling things you owned and used, it's unlikely there'll be any profit. Its targeting business sellers.

The government is the authority ( no pun intended) in encouraging tax evasion, at a big scale of course, they call it tax incentives 😂

That doesn't sound right. How will they differentiate buying to sell than people selling old used clothes (or new that they bought hoping to use and they didn't). There is no clear cut really unless they monitor exactly what you are selling. Sounds they are only concerned about the amount.

quote from article

If people have been trading at above £1,000, but not made a tax return, they may find themselves getting ‘nudge’ letters from HMRC to sort their affairs, or asked to make a voluntary disclosure about undeclared income, says Salter.
“It is quite possible that some of the more egregious cases could result in HMRC audits and even criminal prosecutions.”

HMRC says people selling off clothes or items that they originally bought at a higher price will not be liable for tax on that income.

So if you are selling a lot on vinted, you could get a letter from HMRC asking for more details? Then you would confirm that you were selling at a loss, and it would be case closed.

Why should traders using resale platforms be exempt from tax whilst traders on the high st pay?

If you are running a business of any size then you should expect to use an accountant. The fact that you run your business through ebay of Vinted is irrelevant - traders should pay tax on profits, just like any other trader.

For all the people thinking online traders should be able to evade tax, are you also happy to pay higher personal taxation to make up the shortfall?

How do you know this?

The change is that ebay and vinted amongst others are going to be sharing information from their platforms with HMRC, presumably flagging accounts with over £1k sales in the previous year.

So how do you know the change doesn't mean people selling on those platforms do not need to declare the turnover on the accounts is not generating profit. That is most peoples concerns isn't it.

I presume there is a clarification that can be linked to this thread from HMRC website? My accountant didn't seem to know what the change would mean so would love to point them to the info.

If you are selling off your own old clothes, this has no relevance to you.

If you are buying clothes with the intention of selling at a profit, then you're trading, and you should be keeping receipts anyway.

This is just the start I'm afraid. Bootfairs will be hit next as that's where cash is exchanged.

It's a form of income, and to keep the government happy, you should be declaring it. It's going to get to the point where people are going to need an accountant to deal with their income from eBay, Vinted etc. It's ridiculous.

Getting the rich to 'pay their fair share', ie hit them with even higher tax bills (looking at you Humza Yousaf) won't fix this, but it will send them out of the country owing to inability to operate within the country (and they will take all the jobs with them).

This is happening because the monetary system is falling apart. The fix that will come in eventually will be CBDCs which will account for every penny in the system.

Thank you. I am so astounded by the amount of people on this thread worrying that they’ll have to do a tax return because they’re selling £1k worth of their kids’ old Boden clothes, despite it being pointed out repeatedly- you don’t need to file a tax return if you’re not trading (ie buying things to sell on). Calm down everyone.

So do they send the information from April 2023 to date, do they do it by financial year?

This information will not have to be shared with HMRC until the end of January 2025. Doesn't sound like it from the article.

@NeighbourhoodWatchPotholeDivision and eBay also take a fee on postage charges, so profit gets even lower.

It will be interesting to see how it pans out.
So do they send the information from April 2023 to date, do they do it by financial year?

There are so many Chinese companies shipping from within the UK. Usually fake items or clear copies of branded items. What will happen there? I'd like to see these gone from eBay or, at least, not mixed in with the normal second hand items for sale.

It's not even made up by the Guardian. The article states pretty clearly that it does not apply to people selling their own used clothing. It's made up by the OP and a few headless-chicken mumsnetters.

🤣🤣🤣

haven't RTFT yet, but I think it's unfair. Because you only have to pay tax on any profit you make over the price you originally paid: but the authorities must realise most of us don't keep the original receipts proving what we paid and will therefore get hit by this regardless.

Quick note. Even if I sell a £2 tshirt for £3, I may not have made a £1 profit, because ebay takes a cut on sales!

When you take ebay's cut into consideration, the chances of profiting by accident off reselling secondhand clothes seems infinitesimal.

No, you do not need to do a tax return if you are not trading.

However they do need to spend time filling in a tax return triggered by the sharing of information for accounts selling more than 1k? However they are generated.

At least that's my understanding

Nope, only if you are trading.

If you took HMRC literally you could sell an old car on eBay for £1k and thereafter would have to put every babygro into Quickbooks just to be able to show you weren’t in profit.

How many times do you need to read this? This is completely made up by the Guardian, nobody is going to need to pay tax because they are selling on some used kid’s clothes.

That's how I understood it too, with 5 daughters someone is always outgrowing something, we like to pass on their clothes. So if we did this on ebay we would need to complete another tax return purely for that! Ludicrous.