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?

Many people do 'vintage' selling as a job and thus their earnings are taxed. Anyone doing it as a hobby must keep careful track of what they sell and their allowable expenses (e.g. broadband costs, utilities costs, packing, postage, software to take photos and upload them to sites, etc) as, if (when) HMRC come calling, you will then have evidence to present which probably will mean you pay little to no tax. You cannot make money selling second-hand goods on a regular basis and expect to pay no tax, I am afraid. As to property ownership, it's not tax-free either and maintenance has to go on top (and may not always be tax deductible).

It’s good that people like influencers will be taxed properly

Hi,
I wonder if you can help. I have had a major clearout over the last year and I have sold items like my child’s old toys and clothes that have accumulated over the years, I did not want to add to the climate issue of throwing away. I have not made a profit because obviously every item is a loss items like £1 for slippers £2 for Disney soft toy etc. In the last 15 months the amount has gone over the £1000 threshold but I have not made notes on how much things cost like packaging, labels because I didn’t know this would happen. The issue is you are selling at a loss ie items for £1 it costs more to wrap and package. I have tried to call HMRC for clarification but no answer. I have checked Vinted’s website and it states the allowance is £1735, and I am well under this amount. But would really appreciate your advice. This has really worried me because I don’t want to get a tax bill for items that I sold for £1 which originally cost a lot more than this.

You do not if you are making a loss. But if you make more than a certain amount, you may need to complete a self assessmdnt to evidence that.

What a fucking stupid thread.

You only pay tax on profit.

Profit is when you sell something for more than you paid to buy it, after taking into account all your costs to sell & post it etc.

Its not the amount you sell the item for. That is revenue and irrelevant for profit based tax.

If you are genuinely making actual profit over £1,000 a year from selling on vinted, then yes you need to pay tax on it like any other profitable business, large or small.

You won’t be taxed. This applies only to people who are “trading”, ie buying things with the intent of selling them on at a profit.

Start keeping records so it’s easier to demonstrate you’re not trading.

The threshold is per year

It is £1k per tax year (April to March).

You also do not pay a tax where you have made a loss (selling clothes/ toys for less than you have paid for them).

But if you sell a lot, you may need to complete a self assessment firm to evidence that (due 31 January the year following the end of March tax year... So filing by 31 January 2024 is for the 2022/23 tax year that ended last March).

It does not sound like you need to worry.

So if you’re taxed on profits, and the selling of old clothes is generally at a loss. Logically we can declare that loss on the self assessment and offset against a salary?

It’s ironic that the first sentence in the thread is I can’t believe what I have read?

I run a business reselling second hand stuff, and have done for the last 20 years - all above board and I do a tax return every year.

It’s not as simple as eg buying an item for £1 and selling it for £3 = £2 profit. Each month when I do my accounts I can also claim (as expenses) for purchase of goods, postage costs, internet connection, packaging and stationary, any equipment eg printers/computers, fuel to get to the PO/parcel sending shop, Microsoft office subscription, HP instant ink subscription, any seller fees and small amount for use of home as office. When you take all that into consideration it’s actually quite difficult to make much of a profit.

Vinted now has to send your details to HMRC when you sell 30 items - naff all when when you have a couple of kids. Yes you only pay tax on profit. But just look at the Post Office scandal. You don’t have to be an off grid survivalist to not love the idea of your personal transactions being constantly fed through to the state

If you own 5 properties and rent them out, you'll pay income tax on the rent. Or capital gains tax if you sell? I don't get why you wouldn't pay tax on income you earn by whatever means?

No you can’t. An individual can only offset losses against profits from the same income stream. So for example if you make a loss selling one of your items but make a profit selling a different one, you may offset these two transactions. Same if you have two properties and one makes a loss and the other a profit. But you cannot offset the loss on either against salary as it is not the same type of income.

It's pretty simple really.

If you earn more than £1K annually, doing anything, HMRC want to know about it.

I'm self employed and submit a self assessment.
I earn very little and usually end up paying little or no tax, but they still want to see the figures.

If you do make £1K on selling anything 2nd hand, then you should be prepared to declare it, and also keep records of anything that can be deducted as your costs.

Postage materials
Phone/ internet use as part of selling
Fuel/ car trips to drop off or postage points.

For most people this won't apply, but for people selling online, as businesses, then yes it will.

@NoWayRose Struggling to see how the POS has anything to do with personal taxation. HMRC can see your bank accounts anyway if they want to.

Profit is when you sell something for more than you paid to buy it, after taking into account all your costs to sell & post it etc.

Errr no it's not.

If you bought a dress for your own use and it cost you £50 then you sold it on Vinted for £25, you'd still be earning yourself £25.

You can't offset the cost of the item you have bought for your personal use, worn for 5 years then consider it 'selling at a loss'.

Because the alternative is you'd stop wearing it, give it away, and not make anything on it at all!

Exactly. You pay tax on the income from property that is let out. You can balance income against expenditure e.g. maintenance, accidental damage, repairs etc. Insurance can be factored in - you generally need an accountant to do this for you. If you sell you pay capital gains tax. If you generate income you are supposed to pay tax on it (less expenses) so I do not understand the OP's original point.

Is this new? I knew this years ago selling on eBay, the only difference is they are forced to pass info to HMRC

This. 👆

You won’t pay tax. This thread is ridiculous made by someone who didn’t bother to do even 39 seconds of research.

You’re not a professional are you?

You only get taxed if you’re seen as “trading”. Selling stuff you purchased and used for personal use would not be considered trading. Because ultimately you aren’t making any money. Despite your weird assessment. Go google. There’s loads out there.

I have been self-employed for about 20 years and do a tax return. I think the reporting by the Guardian on this is SO irresponsible and designed to whip up indignation in support of their own political aims. And it's clearly working.

There is NOTHING NEW about this. It has ALWAYS been the case that if you are trading - buying at a lower price, selling at a higher price - that you pay tax on your PROFIT. Whether you are running a market stall, bricks and mortar store or selling on Ebay/Vinted.

It's really scary how few people do not see the difference between selling price and profit, and who can't understand that selling off stuff which your children have worn or you have used is not the same as buying items with the express intention of reselling.

You are wrong on this.

Prove it @Aprilx
Links to HMRC would be welcome I'm sure.

If you were right, why would HMRC want people to declare profits (and Vinted to inform HMRC) because the clothes on Vinted are - by their very nature- being sold for less than the original price. They are 2nd hand.

Have a little read.

https://www.gov.uk/government/publications/selling-online-and-paying-taxes/selling-online-and-paying-taxes-information-sheet