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?

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.

Exactly this!

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

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.

No but you would need to do a tax return

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.

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.

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.

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.

Nope, only if you are 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

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

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.

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.

🤣🤣🤣

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.

@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.

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.

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.

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.

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.

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.

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?

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.