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Original poster

Tax on Vinted sales!?

182 replies

Lewiscapaldiscat · 02/01/2024 13:56

Article

I can’t believe what I have read?

so the rich can own 5 properties and that’s a hobby but selling your kids old clothes at a loss is a profit?

you only have to sell £84 month to fall foul of this! (£1000 a year!)

thoughts?

Selling goods online? Be warned: HMRC will soon know about it | Tax | The Guardian

Whatever it is, from used clothes on Vinted, collectables on eBay, to Airbnb lets, profits will now be under scrutiny

https://amp.theguardian.com/money/2024/jan/01/selling-goods-online-be-warned-hmrc-will-soon-know-about-it

OP posts:
Oblomov23 · 02/01/2024 16:38

Makes me laugh. We can't cope with Corporation Tax on Amazon or Nike or FedEx. So let's go after the little man for selling his kids Halloween costume on EBay.

NoWayRose · 02/01/2024 16:37

No but you would need to do a tax return

CrazyDaisy0 · 02/01/2024 16:34

DeWhC · 02/01/2024 16:33

Hi, I just wanted to ask as I am a bit confused from all of the replies - I often sell my clothes (own person bought from shop) or old vintage items that we have had lying around for a while and usually sell them quite cheaply! Will I need to start paying tax on that this year if I make over 1k?

No. Only if you were trawling the charity/vintage shops with the sole intention of selling the items online to make money.

DeWhC · 02/01/2024 16:33

Hi, I just wanted to ask as I am a bit confused from all of the replies - I often sell my clothes (own person bought from shop) or old vintage items that we have had lying around for a while and usually sell them quite cheaply! Will I need to start paying tax on that this year if I make over 1k?

Flickersy · 02/01/2024 16:30

Ladolcevita233 · 02/01/2024 14:59

I know people who sell items they buy in charity shops, thrift shops, car boot sales, Facebook marketplace bundles etc on eBay & Vinted.

They are buying to sell, but the vast majority of the items would be second hand/used (with only a very few new with tags).

They might clear out their own items occasionally too.

They're not putting on multiple items that are the same, the majority of items are used, the number of items they're putting on varies by week.

I'd be interested to know if/how hmrc algorithms will detect that they are not just clearing out.

Show quote history

I can think of several ways it would be clear someone is not just having a clear out:

  • sheer volume of sales which is consistent throughout the year
  • variations in sizing of clothes (you'd have to be one hell of a yo-yo dieter to be selling women's clothes in both a 6 and a 26)
  • large variation in type of clothes being sold which indicates it's not just from one family's wardrobe (mens, women's, children's, specialist work gear, holiday clothing, sports gear, formal and non-formal etc)
  • large volume of sales with "new with tags" etc
  • expertise in photography, descriptions etc which indicate this isn't just someone chucking a few pictures up to get rid of old things
NeighbourhoodWatchPotholeDivision · 02/01/2024 16:25

biscuitnut · 02/01/2024 16:21

I am more fascinated by the thought that anyone could make more than £1000 a year on vinted. I could list £500 in used notes for sale for £50 and some cheeky twat would ask ‘would you accept £10 hun, pay your nest week when I get paid?’

Exactly this!

CrazyDaisy0 · 02/01/2024 16:25

SparkIehoof · 02/01/2024 15:21

If you buy stuff solely for personal use and then sell it on (for a lower/same price) when you're done, it's not a business

But what if you sell your own stuff on eBay and the end price is higher than you paid? For example, I recently sold a piece of jewellery that I paid £50 for ten years ago for almost £200. It was an auction, so I had no idea how much it would end up selling for (I started the auction at £25).

In the past I've bought items (new and second hand), worn them a few times then sold them when having a clear out and occasionally they've sold for more than I paid.

However, I'm definitely not a trader, despite having made the occasional profit on personal used items. If I'm starting my auctions at very low prices and there ends up being a bidding war I have no control over what items sell for.

Also, what about people who sell a few high value personal items a year? For example it's not beyond the realms of possibility that someone might sell say a laptop, a musical instrument and a piece of jewellery in year and the total is over £1000. They're not trading and they're only selling stuff they've bought and used themselves.

I was going to have a massive clear out in the spring but I'm not sure I will now!

If you happen to make a bit of profit on a personal item or make over £1000 by selling personal items you aren’t trading, so no issue.

NoWayRose · 02/01/2024 16:25

As I understand it, everyone needs to do a tax return if they earn £1k or more - whether they are in profit or not though? I understand that you only pay tax when you make a profit. But you once you earn over £1k, you need to declare it and prove you’re not making a profit by being able to show the buy and sell price for everything. Therein lies the massive hassle for those that are selling their own second hand goods.

NeighbourhoodWatchPotholeDivision · 02/01/2024 16:23

I bought some secondhand Boden kids' clothing from ebay last week, and there's no way the original purchaser made a profit. Grin

CrazyDaisy0 · 02/01/2024 16:23

NoWayRose · 02/01/2024 15:55

I think it’s often quite easy to reach £1,000 of selling. If you buy Mumsnet type brands, it’s a couple of Frog bikes, and a few handbags and throw in some Boden coats …

So sell those and then you need to do a tax return. Then presumably need records of the price of everything you sold? Seems a right hassle when you’re just trying to offset the cost of living / do something green

No, you wouldn’t have to do a tax return because you wouldn’t be trading.

biscuitnut · 02/01/2024 16:21

I am more fascinated by the thought that anyone could make more than £1000 a year on vinted. I could list £500 in used notes for sale for £50 and some cheeky twat would ask ‘would you accept £10 hun, pay your nest week when I get paid?’

TeacherPlease · 02/01/2024 16:20

TravelInHope · 02/01/2024 16:12

Exactly not. There is no profit so no tax liability.

Show quote history

The £1,000 is a gross income test, so in this example they would need to do a tax return IF THEY ARE TRADING, even if no actual profit.

There would be no tax to pay though as no profit.

They would also unlikely to meet that badges of trading unless the items are being enhanced before sale, are being bought with a view to sale at a profit or there is an extremely high volume of transactions.

This is not a change in rules. It’s a press campaign for people who might not realise they are evading tax to come clean and straighten up their affairs. It’s also HMRC targeting people using these platforms as a business. They often pick a new sector and focus on it for a few months.

C. £20bn/56% of the tax gap (ie tax that should be paid but isn’t) comes from small businesses. Around 15% comes from large corporates and millionaires combined. This is just another of HMRC’s efforts to reduce the tax gap.

NeighbourhoodWatchPotholeDivision · 02/01/2024 16:17

Surely you know if reselling your outgrown kids' clothes on ebay is routinely netting you more than you paid.

It seems unlikely to me, but if you are making £1000 of profit per year then be honest about it.

I buy all our stuff secondhand whenever I can, and when we're done with it, I always end up giving it away via social media because it's always too good for landfill, but never good condition enough to sell. I don't list stuff for more than I think it's worth because that's dishonest!

In the event I can't remember that I bought a secondhand tshirt for £2, and end up selling it for £3, I'll still have to do that with enough items to make another £999 in profit over what I paid for it. It seems exceedingly unlikely, unless you deliberately search out items to resell.

TravelInHope · 02/01/2024 16:12

Ladolcevita233 · 02/01/2024 15:56

Exactly

Show quote history

Exactly not. There is no profit so no tax liability.

TravelInHope · 02/01/2024 16:11

Ladolcevita233 · 02/01/2024 15:34

Your bank details .... You're saying HMRC will root around in people's bank accounts if they look like they're selling too many used clothes on eBay?

If, for example, you are claiming UC but can apparently find over £6K of old clothes to get rid of each year

For the sake of argument, the person could be on UC as of a month or two before; they could previously have had a good income and amassed a lot of personal items Inc clothing, bags, jewellery, tech etc. They might be on UC due to a change in circumstance like divorce, ill health, redundancy, suddenly solo parenting. That stuff might be the only way they can raise money for a few years.

Oh and you can get UC while having 6k (?) in the bank, so it's not inconceivable someone could buy stuff and sell it on if they no longer need it.

Edited
Show quote history

HMRC have access to lots of information. If they are suspicious they will send you a polite reminder. The following year they might investigate more thoroughly. This is really not a big deal for the vast majority of people who sell stuff online.

LucyInTheParkWithDragons · 02/01/2024 16:04

NoWayRose · 02/01/2024 15:55

I think it’s often quite easy to reach £1,000 of selling. If you buy Mumsnet type brands, it’s a couple of Frog bikes, and a few handbags and throw in some Boden coats …

So sell those and then you need to do a tax return. Then presumably need records of the price of everything you sold? Seems a right hassle when you’re just trying to offset the cost of living / do something green

That’s not an issue here at all. You wouldn’t need to do a tax return in this scenario.

You are really unlikely to sell old coats and bikes for more than you paid. That means that there will be no profit (and no tax) all.

Profit isn’t the price you sell something for, it’s the difference between the price you sell it for and the price you originally paid.

Ladolcevita233 · 02/01/2024 15:58

aSwarmOfMidgies · 02/01/2024 15:55

They may claim innocence but they will be investigated anyway

No one has to create a pecking order list - cheating is cheating whether it's small or large

Yet the highest level cheating - including the banking scandal - somehow never gets prosecuted.

Ladolcevita233 · 02/01/2024 15:56

NoWayRose · 02/01/2024 15:55

I think it’s often quite easy to reach £1,000 of selling. If you buy Mumsnet type brands, it’s a couple of Frog bikes, and a few handbags and throw in some Boden coats …

So sell those and then you need to do a tax return. Then presumably need records of the price of everything you sold? Seems a right hassle when you’re just trying to offset the cost of living / do something green

Exactly

aSwarmOfMidgies · 02/01/2024 15:55

They may claim innocence but they will be investigated anyway

No one has to create a pecking order list - cheating is cheating whether it's small or large

NoWayRose · 02/01/2024 15:55

I think it’s often quite easy to reach £1,000 of selling. If you buy Mumsnet type brands, it’s a couple of Frog bikes, and a few handbags and throw in some Boden coats …

So sell those and then you need to do a tax return. Then presumably need records of the price of everything you sold? Seems a right hassle when you’re just trying to offset the cost of living / do something green

Fieldofbrokenpromises · 02/01/2024 15:53

Jf20 · 02/01/2024 15:45

Well of course you do, it’s nothing new. If you sell something for more than you originally bought it for, the difference is the profit. You can do that up to 1k profit per year tax free. If you make more than a grand, you need to pay tax on anything over 1k. How much do you think you should be able to earn and not pay tax?

Show quote history

By being Michelle Mone and Doug Barrowman - make £33million profit and claim it's "not yours".

Ladolcevita233 · 02/01/2024 15:48

Jf20 · 02/01/2024 15:45

Well of course you do, it’s nothing new. If you sell something for more than you originally bought it for, the difference is the profit. You can do that up to 1k profit per year tax free. If you make more than a grand, you need to pay tax on anything over 1k. How much do you think you should be able to earn and not pay tax?

Show quote history

Ask the multi nationals' and billionaires' shit hot lawyers.

Jf20 · 02/01/2024 15:45

Ladolcevita233 · 02/01/2024 15:40

I actually buy the vast majority of stuff second hand ; it's cheaper, it usually benefits charities, and I'm a tree hugger.

I also sell it on if I can when not using it.

My area has a lot of well off holiday home owners who buy expensive stuff out of two department stores and then chuck it out in good condition. The stuff sells well because it's mostly labels that people think are naice.

It's pretty ironic that I'm being frugal and recycling (and giving to charity, I admit I buy way more than I would new; because it's reasonably priced and for a good cause), yet I'd have to watch like a hawk if I made over £89 a month selling stuff (women's, men's, kids etc) on - yet I wouldn't have to think about it for one second if I'd bought it all new.

Edited

Well of course you do, it’s nothing new. If you sell something for more than you originally bought it for, the difference is the profit. You can do that up to 1k profit per year tax free. If you make more than a grand, you need to pay tax on anything over 1k. How much do you think you should be able to earn and not pay tax?

mn29 · 02/01/2024 15:45

Ladolcevita233 · 02/01/2024 15:40

I actually buy the vast majority of stuff second hand ; it's cheaper, it usually benefits charities, and I'm a tree hugger.

I also sell it on if I can when not using it.

My area has a lot of well off holiday home owners who buy expensive stuff out of two department stores and then chuck it out in good condition. The stuff sells well because it's mostly labels that people think are naice.

It's pretty ironic that I'm being frugal and recycling (and giving to charity, I admit I buy way more than I would new; because it's reasonably priced and for a good cause), yet I'd have to watch like a hawk if I made over £89 a month selling stuff (women's, men's, kids etc) on - yet I wouldn't have to think about it for one second if I'd bought it all new.

Edited

But are you selling over £1k per year AND are you making a profit overall? If no to either of these, nothing to worry about! If yes then like it or not you’re running a small business and therefore will have to pay tax on any profit.

TheCompactPussycat · 02/01/2024 15:43

Ladolcevita233 · 02/01/2024 15:34

Your bank details .... You're saying HMRC will root around in people's bank accounts if they look like they're selling too many used clothes on eBay?

If, for example, you are claiming UC but can apparently find over £6K of old clothes to get rid of each year

For the sake of argument, the person could be on UC as of a month or two before; they could previously have had a good income and amassed a lot of personal items Inc clothing, bags, jewellery, tech etc. They might be on UC due to a change in circumstance like divorce, ill health, redundancy, suddenly solo parenting. That stuff might be the only way they can raise money for a few years.

Oh and you can get UC while having 6k (?) in the bank, so it's not inconceivable someone could buy stuff and sell it on if they no longer need it.

Edited
Show quote history

Did you read the article?

Websites will have to collect data about sellers. For individuals, this will be their name, address, date of birth and national insurance number, plus what they have earned and paid in fees on the platform. If a property is being let, they will need its address. This information will not have to be shared with HMRC until the end of January 2025.
Register says other data, such as bank account details, may also be collected and ultimately be shared with tax authorities.

For the sake of argument, the person could be on UC as of a month or two before; they could previously have had a good income and amassed a lot of personal items Inc clothing, bags, jewellery etc. They might be on UC due to a change in circumstance like divorce, ill health, redundancy, suddenly solo parenting. That stuff might be the only way they can raise money for a few years.

So it might trigger further investigation by HMRC who will then decide whether tax is due on profits made over and above £6,000. It's nothing to get het up about. You're behaving as though they are going to be ripping bottles of milk from the mouths of babies!

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