Page 8 | Tax on Vinted sales!?

Lewiscapaldiscat · 2024-01-02T13:56:25+00:00

[[https://amp.theguardian.com/money/2024/jan/01/selling-goods-online-be-warned-hmrc-will-soon-know-about-it 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?

Q2C4 · 25/01/2024 08:02

NoWayRose · 02/01/2024 16:25

As I understand it, everyone needs to do a tax return if they earn £1k or more - whether they are in profit or not though? I understand that you only pay tax when you make a profit. But you once you earn over £1k, you need to declare it and prove you’re not making a profit by being able to show the buy and sell price for everything. Therein lies the massive hassle for those that are selling their own second hand goods.

Only if you are trading ie selling with a view to a profit (profit meaning that you're aiming to sell items for more than you bought them for).

Q2C4 · 25/01/2024 08:11

Busymum51 · 05/01/2024 20:39

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 could try contacting the Low Income Tax Reform Group for advice: www.litrg.org.uk

Q2C4 · 25/01/2024 08:26

Branster · 09/01/2024 22:01

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.

Banks already report details of interest paid to their customers to HMRC; are you going to stop earning interest too?!

Q2C4 · 25/01/2024 09:05

It does not help matters when HMRC dish out incorrect advice on this - see the comment from HMRC Admin 21 on this thread: community.hmrc.gov.uk/customerforums/sa/da2a25ba-30ab-ee11-a81c-002248004b84

BoldZebra · 18/05/2024 10:21

Branster · 09/01/2024 22:23

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.

This is exactly me. I retired last year and am a bit of a hoarder (no I don’t need help😁) I’ve sold over £1000 this year and still have some items listed although I’ve mostly finished the sort out for now.
come the autumn I was planning to have another clear out but am wondering if it’s worth it now. Whilst everything has sold at a lost and 99% was pre worn, I’m always dubious of coming under the gaze of HMRC
as the onus will be on me to prove it’s mine and I’m not buying to sell for profit!
I’ve already had an email from Vinted telling me I’ve exceeded the 30 items threshold and requesting me to put my NI number in to their pre completed form. Ive an issue with this as I can’t see what they have disclosed to check it’s correct and I’ve requested this but it’s now radio silence from Vinted.
im not sure why they have requested this already as I could easily look like a trader despite the sales are dropping off now I’ve finished the current clear out 🙄

Grammarnut · 18/05/2024 15:28

BoldZebra · 18/05/2024 10:21

This is exactly me. I retired last year and am a bit of a hoarder (no I don’t need help😁) I’ve sold over £1000 this year and still have some items listed although I’ve mostly finished the sort out for now.
come the autumn I was planning to have another clear out but am wondering if it’s worth it now. Whilst everything has sold at a lost and 99% was pre worn, I’m always dubious of coming under the gaze of HMRC
as the onus will be on me to prove it’s mine and I’m not buying to sell for profit!
I’ve already had an email from Vinted telling me I’ve exceeded the 30 items threshold and requesting me to put my NI number in to their pre completed form. Ive an issue with this as I can’t see what they have disclosed to check it’s correct and I’ve requested this but it’s now radio silence from Vinted.
im not sure why they have requested this already as I could easily look like a trader despite the sales are dropping off now I’ve finished the current clear out 🙄

Show quote history

If you sell something it does not matter why you bought it. HMRC will be after you if you appear to be making money. Keeping strict accounts of sale price, postage and platform fees will help you with HMRC, but they will not accept that you have made a loss on an item you bought to wear and then re-sold, because you have not: you have had the use of that item (its value) and are now cashing in what value is left. HMRC are not friendly. Keep accounts and if Vinted is saying you have over-sold then listen to what they ask of you - they too are interested in not attracting too much attention from HMRC.

Q2C4 · 18/05/2024 19:26

@Grammarnut If you're doing a clear out of old clothes you no longer want, and at less than they cost to buy, then you are not going to be classed as a 'trader'.