Vinted - have you informed HMRC about sales, or earnings. Im under the threshold but been told to report 🤷‍♀️

[CornishTeaTime]

Vinted has advised to report/complete a form Ive made £600 since starting with them over 65 sales.

I work part time and also do self employed work one day a week which Im registered for...do I need to declare vi ted earnings on my tax assessement in April 🤷‍♀️

Anyone done this?

How on earth can HMRC prove this though, or indeed how can you as a seller disprove it if collared? I've bought loads of stuff in the past from charity shops or on eBay that I've resold because I went off it/it didn't fit/I didn't like it when it arrived. Sometimes it sells for more than I paid. But I didn't list it with the intention of making a profit. How can intention be proved?

Yes I know that, sorry I'm not explaining myself well. Trying to establish if I have to report the individual item to HMRC as income, I'm using my personal money not company money, my business isn't selling clothing, or anything, it's as a trainer. Or, when I do my tax return as I did just before Christmas I add up my sales deduct the buying price and if it's over £1000 I add it to the additional income box, which is what my accountant did this year. It was listed along with bank interest, shares and dividends income etc.

That's why they have markers on volume as well as money. Traders will have a much higher throughput than a mumsnetter clearing out her closet

We're talking four or five bags a month over a couple of years (yep I had a SERIOUS habit!). Probably made about £1500 a year, including other stuff I sold (basically crap from the house). Like I say it's a good few years ago now anyway - hopefully I'd have heard from them by now if they had concerns!

If you're already on self assessment then when it asks how many self employments you have you just add another one. So if you had one, you now say two.

But note that earnings on Vinted are only taxable if you are using it to trade i.e. buy stock, sell it for profit etc. If you're just selling your old tat and actually making a loss then the sales aren't taxable.

I'm an international student and I love trading because that's what I do back in my country. I've bought a car when I got to the UK for a personal use but sold it after 2 months with a £100 profit@FuckleDo I need to declare this? I wish to do trade anyways but I'll like to follow the required procedures. Any guide?

I thought they'd changed it now so that even individuals have to declare it?

That depends on what is meant by ‘declare’ and by ‘individual’

Online market places now need to inform HMRC if users exceed thresholds on the number of transactions or total sales.
(This is the most recent change)
This does not necessarily mean that you are liable for tax or would need to submit a tax return
So eBay / Vinted may notify to HMRC without the individual actually needing to declare to HMRC

An individual with income other than a PAYE salary may already have been liable for a self assessment and subsequently the relevant income/capital gains - this is irrespective of whether a business or individual

If you have sold for sufficient profit the tax man is interested and if you are buying / selling intending to make some money then the tax man is interested
It then depends on how much is made as to whether there is a tax liability

It may be of no concern to HMRC, may be able to cover it as the ‘trading allowance’ or may be a full self assessment

I am an individual who has bought & sold as a hobby, and continued, making pocket money then more than pocket money, but not getting rich
HMRC are interested in me

www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms

As long as it is a passenger vehicle and not used in any trade, it will be exempt from tax.

Just to clear up some other questions thrown out today while I have been at work:

1. The UK has a system called Self-Assessment. It 'does what it says on the tin' ie the tax code generally is one of voluntary disclosure. HMRC do not generally come looking for you, it is up to you to know the rules and apply them. Vinted makes a disclosure to HMRC but this doesn't mean HMRC decide if you are taxable or not - you do by registering for Self-Assessment and filing tax returns and profit figures.
2. Income Tax and CGT are governed by two entirely different Acts of Parliament. You have to be engaged in a business like manner to be liable to income tax, ie you intend to make a trading profit from selling items over a period of time or a large single transaction of some scale (there is a case where someone speculatively bought tons of toilet roll to resell in a single deal) in order to be liable to income tax (and potentially NIC). Motive on acquisition is important. If those clothes you grew out of just happen to become fashionable and wanted, your profit is not derived from trading.
3. Liability to CGT on a chattel has nothing to do with motive. It is a strict liability on selling tangible movable property worth £6k or more at a profit. Buy a caravan in 2019 then sell it during lockdown for a profit and that profit may be liable to CGT. Chop a mature oak tree down in your garden and sell the trunk for more than £6k then you have a CGT disposal - a tree is not a chattel but a fallen trunk meets the definition of 'tangible moveable property' once it is cut down. Inherit Aunt Maud's diamond ring and if you sell it for £10,000 you may have a CGT bill - a ring is a chattel.
4. The rules are mutually exclusive. You don't pay Income Tax and CGT on the same profit.
5. Adopt some common sense #1. If I sell 20 items a year on e-Bay that I purchased to wear for personal enjoyment but then happen to resell at a profit, that savvy attitude to reselling does not make me a trader. But if I buy knowing I will sell at a profit, and wear the clothes to a few parties to 'window dress' my personal use, then I am on weaker grounds. Again it comes down to your motive on acquisition.
6. Adopt some common sense #2. Even if you make £2k - £3k per annum profit from reselling, are HMRC really going to throw the book at you if you did not declare this? You will have other costs to offset - phone, postage, travel costs etc and the tax at stake is going to be small. Size does matter - a profit of £2k to £3k is unlikely to be a business in the 'adventure of a trade'. It really isn't.
7. If you fail to declare, whether trading profits (Income Tax) or the sale of a chattel (CGT) HMRC usually go back four years after the end of the tax year. Today is 17 January 2025 so HMRC can go back to the tax year 2020/21 and no further back so long as you have been genuinely 'negligent'. If you have been fraudulent - ie you knew you were trading or you knew you sold a chattel for more than £6k and were potentially taxable based on CGT limits - HMRC can go back six years, and potentially up to 20 if serious fraud, ie you hid the profits and took steps to (spreading across various accounts in kids, DH name etc).
8. Too many of your are far too worried. Remember - it comes back to motive on acquisition. Being a fashionable person and buying and selling clothes and household items that have had genuine personal use does not make you a trader. Compared to days of old, the internet enables us to resell items so they do not go to landfill. It is mostly that simple and HMRC should not be putting the fear of God into people who are trying to be economically savvy in reselling personal possessions while protecting the environment.

Sleep easy.

Nothing regarding tax legislation has changed here. What has changed is the way online marketplaces such as eBay/vinted are required to report their user activities to HMRC. Before, HMRC had to request information whereas now, it is sent to HMRC if you hit the threshold. It doesn't mean you owe any tax or even have to declare it via self assessment. The grey area is the word "trading". Now some people who do trade will claim they ain't trading etc in order to avoid paying any tax and maximise their profit. That's down to that person. The problem comes when somebody from HMRC goes over the data ( that they are now receiving) and they suspect you are trading regardless of whether you are or not. At that point, HMRC will send you a letter stating they suspect you are trading and a request to fill in a self assessment in order to settle any unpaid tax. You then have to prove to them you are not trading or accept you are and pay any tax due. The worse thing to do at this point is bury your head in the sand as the taxman is relentless and penalties can soon add up. Now, HMRC can be quite helpful and understanding. But, if you get on the wrong side of them, they can be quite demanding. In the ops case, there is no need to fill in a tax return. However, there will be people claiming the same who deep down, know they are trading but are convincing themselves they aren't. If HMRC suspect you are trading, they will be in touch. At that point, you will have to deal with the situation. In reality, if HMRC deem you are trading and you can't convince them otherwise, you could end up with a tax bill that increases substantially. For most, it's easier to pay it as very few have the resources to take on the taxman. Selling your own stuff on eBay etc is ok eg 5 pairs of shoes etc but you might have a hard job convincing HMRC when you've sold 30 pairs at all different sizes regardless if you're selling them for your family. It's all down to the individual being honest with themself and what risk they are prepared to take. If you do find you get a letter from HMRC, don't panic as they aware people may not be aware they need to pay tax so they can be understanding. Worse thing to do is ignore it. On a final note, with the so called £22 billion black hole, this government is calling in its debts where it can so HMRC are on the rise with regards to tax due. If you are trading and haven't declared it via a self assessment, HMRC won't be far behind you.

UPDATE
Last day is today to submit your form on Vinted.

I was still undecided as I am not a trader but I read Martin Lewis advice and even if you are not selling to profit or buying to resell for profit you still need to submit the form. So Ive done it 🤷‍♀️