Tax on Vinted sales!?

[Lewiscapaldiscat]

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?

This. It’s no change to what is already in place.

I think HMRC are probably more interested in the people who sell on Vinted as a business than individuals who sell things.

Sorry, I skim read that - I don't know if you're supposed to declare it, even if it's used items of your own.

Do people selling off their stuff on eBay etc really keep track all year to make sure it's £1000 or under?

It’s not so much about the value of what you sell, it’s whether you make a PROFIT. You could sell all your old designer handbags in a year for £5k but if you paid more than £5k for them in the first place then there’s no tax return to worry about, even though it’s over the £1k.

If you are buying stuff in order to sell it at a higher price than you paid, i.e. a profit, it's a business. Age of item doesn't come into it, otherwise antiques dealers would be excused tax. Old clothes are also a business if you're buying to resell at a higher price.

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.

own 5 properties and that’s a hobby

You can own as many as you like and have it be a hobby. If however you're making more than £1,000 income from rent annually you need to report it and pay tax on it.

selling your kids old clothes at a loss is a profit

No, it's a loss. I think you need to look up the meaning of profit. And also read the article properly.

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

Yes, if you're a sole trader (a reseller counts as a sole trader) and you make more than £1,000 annually in turnover then you must register for self-assessment and declare your income.

thoughts?

That you need to dial down the outrage and dial up the critical thinking.

I don't think this is correct 🤔

https://www.gov.uk/check-if-you-need-tax-return

HMRC aren't the only people who should be interested.

I'm suspicious about the volume of brand new with tags goods at rock bottom prices. Why don't the sellers simply take them back to the store for a refund? They can't all be unwanted gifts. I suspect shoplifting.

If you tell that form that you're self-employed and earn more than £1,000, it correctly tells you that you should send a self-assessment.

Ebay provides you with a monthly statement so it's not exactly difficult to do.

I concede I didn’t read it fully and got swept up in the headline!

seems you can privately sell £6000 of old items but if it is as others have said buy for £1 sell for £5 then that is liable!
think glitter glasses!
phew - back to find old tat to list!

Article I did read.

Or fakes.

HMRC are not interested in the people selling their old stuff online. This is to target high volume and business sellers.

The people who work in compliance for HMRC are not the people who work in call centres or process returns. I understand they are highly trained: most cases are risk assessed and selected using algorithms to analyse the data - not some bod scrolling through eBay.

Anyone who thinks they are too clever for HMRC should think again.

How embarrassing. To post something like this having not bothered to read it properly 🤡

And how is HMRC going to establish that ..... Require receipts for all items - for sales over £1000 in a year?

They won't. They'll analyse the data from the online platforms and use it to establish who is trading and who is just having a clear out.

Those who are trading should be keeping records. If they're not and they get in trouble, that's their own look out.

Some people do turf stuff with tags into charity shops, but yes; it could be shop lifting.

seems you can privately sell £6000 of old items

£6000 a year

OP is getting confused between the chattels rules for capital gains tax, and the rules for income tax on sole-trading income.

Edit - sorry, see you removed the question mark.

Omg this is ridiculous. Looks like vinted and all these other places won't have any sellers and buyers at this rate. The government are bastards for doing this. Utterly disgraceful

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.

What bastards for raising taxes on business profits ?

Get a grip !

Sorry it was meant to have a question mark lol

Always read the linked article and thread.

Typical Guardian whipping up outrage, if you spent even a few minutes on research you will find tax does not work like this.

So no, a rich person cannot rent out five holiday homes call it a hobby and then not pay tax, this is utter nonsense.

And you do not pay tax on income, you pay it on profit, so if you are selling clothes for less than you paid for them there is no profit, so no tax.

Complete non story.

Yes, the story is merely that HMRC are (1) going to go after tax evaders who sell through vinted and (2) warning those who my not realise that they are evading tax.