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 think you know best @Aprilxbest contact Vinted and HMRC asap because why else would the be announcing this change?

The link you left is not exactly what you said upthread.

<shouting>

YOU ARE ONLY SUBJECT TO INCOME TAX ON SALES IF YOU ARE TRADING WITH A VIEW TO PROFIT

CLEARING OUT YOUR WARDROBE IS NOT TRADING WITH A VIEW TO PROFIT, EVEN IF YOU DO HAPPEN TO MAKE A PROFIT

There is no change! The same income tax law applies as it always has done.

The difference is that online sales platforms must now liaise with tax authorities in OECD countries to provide information on traders.

It's a fine line @Aprilx and is all in the detail.

If someone buys something off Vinted for £5 and resells it at £10 they make a profit.

And people do grab bargains and resell, especially designer stuff.

I've seen designer bags that are identical on Vinted, being sold for a £50 difference. So someone could buy it for £100 and resell on Ebay for £150 (if they were lucky.)

You are right that someone selling their old clothes won't be paying anything, but there are people who buy and sell as traders, but look like non-traders.

As always the Guardian headline is inaccurate as it paints a distorted picture which is only made obvious in the detail later.

There is no change to tax law.

The only change is that HMRC are now tapping into Vinted’s data to help to identify people that might be trading rather than merely selling on their old stuff.

I don’t need to contact HMRC or Vinted as I have never bought, sold or indeed ever even looked at Vinted

If you are buying something for the sole reason that you know you can make a profit from selling it, you're trading.

If you buy something because you genuinely like it, then decide later you don't, or it doesn't fit, or it's served it's purpose and then you sell it, you're not trading.

If you're flipping tens or hundreds of designer bags a year and try to tell HMRC you just didn't like everything you happened to buy, they're likely to take a dim view.

Er no, profit is your GAIN not your earnings. If you bought a dress for £50 and sold it for £20 then your income is £20 but you have not made a profit, you have made a £30 loss.

If you bought a dress for £50 and sold it for £80 then your income is £80 and your profit is £30.(ignoring additional costs of packaging etc for the sake of simplicity).

What is even scarier is the number of people who would (rightly) be sceptical of everything they read from the likes of the DM but credulously suck up pieces like this from the Guardian.

The Guardian used to be a well respected liberal left leaning broadsheet with a good standard of journalism. Under Viner it has become into a West Coast clickbait tabloid with journalism standards drifting down to the gutter. The Observer is closer to the old values of journalism but I don't see that lasting when Webster moves on.

No they aren’t.

You don’t pay income tax on the entire rent though.

You pay tax on the profit, same as in any form of self-employed work. A hairdresser or plumber doesn't pay income tax on the whole amount you hand over to them either, they deduct their costs first (materials, premises, vans, insurance etc).

I know.

i don’t know why you’ve told me any of that.

Except they are. 🙄

They actually said that if you sell your old dress that cost you £50 for £25 then you have to pay tax on £25. There is no tax to pay in this situation as firstly it is not trading and then, even if it were trading, it was sold at a loss anyway. So yes they were definitely wrong.

Sorry! I agree with you. You weren’t replying to the comment I thought you were replying to. Sorry!

I’m so worried.
I sell my own items like bags and clothes as I’m hoarder and total shopaholic so I accumulate lots of items and what I do is I sell my items to buy more, never use them, and then realise I got too much so sell on again, buy more and etc.
Endless circle .
now I will be taxed on it?

Are you making a profit??

If you're selling a tonne of items you never use then yes it's possible you may fall under the trading umbrella and into the scope of tax, but you'd only be taxed if you were making a profit.

Perhaps use this as a wake up call to get help for your shopping addiction and hoarding.

So Martin Lewis has explained that a great number of selling platforms will be sharing information covering sales starting in 2024. Anything over 30 sales/year or earnings over Euro 2000/year.

30 items a year is absolutely nothing unless they are higher value, over £50. Otherwise it's not worth bothering to have a clear out.
Such a shame. It means we won't be finding those great bargains from normal people clearing out their wardrobes, beauty stash and children's toys. And it means more stuff being thrown away or donated to charity shops. Charity shops nowadays are full of expensive crap so they'll be inundated with more products which they would discard. Or sell on eBay! But nit as cheaply as an individual selling own stuff.
Maybe charities will benefit in the end?

As regards traders avoiding to declare sales and not paying the correct tax, these types of people/businesses always find a way to avoid responsibility.

Forgot to add link

www.moneysavingexpert.com/news/2024/01/online-platforms-etsy-vinted-airbnb-report-hmrc/

No, you have the wrong end of the stick, that's only part of what the article says.

The platforms may well be reporting any sales over 2000 euros to HMRC, but HMRC are ONLY INTERESTED if you are trading. Not selling your own used things.

Sorry, you are correct.

But the whole faff of it puts me off. Just to have to demonstrate. When I have a yearly or bi-yearly clear out I can easily sell over 200 items all priced low but still adds up to over £1000 in the space of 6-8 weeks. Especially if this is not net sales so it includes value of postage and before platform fees. A bit of an admin involved but a satisfying result for many reasons. Not sure I can be bothered to have to (potentially) account to anyone about it. I can't be alone in my thinking.

Well that's up to you, but "having a clear out" is not trading. HMRC will not be interested.

Hi. My friend also thought she could get around paying tax by not withdrawing funds to her account so that nothing will show up on her bank statements Did you ever find out? I personally don’t think it’s a solution. You still have a Vinted balance they can see…

hello, im selling on vinted and i got around 400 but im not registered for tax or anything i’m in spain is it okah

I would suggest you don't take advice from MN on tax! This thread proves lots of people haven't got a clue!

I'm not sure HNRC take, but someone on MN said it was fine as a form of defence.