to think that if you sell things for less than you bought them, then you aren't making £3000 a year

[cakeorwine]

I make thousands selling clothes as a side hustle on Vinted - the tax could ruin my holiday... but it won't put me off | Daily Mail Online

I see this loads - people who say they are making £1000s a year but in reality, they aren't looking at profit but turnover.

It seems this lady is buying clothes to wear and then selling them at bargain prices.

So yes, she is getting money back from her clothes that she is selling, but she has had to buy them in the first place to wear.

I also don't think she will have to pay tax - as she has not made a profit.

She could be better off not buying the clothes in the first place, but that's a separate discussion.

The details get sent to HMRC who will most likely check to see if it matches up with your tax return

so if Sell 30 items then have to complete a tax return?

i don’t think 30 items is a lot.

What are you not getting @Cornflakelover couldn't be clearer 😁

Wait, where did the 30 items limit come from? All I’ve been reading about is the £1000 threshold. Is the re an ltem number in the legislation?

Yes what if you only sell for £5 each then eBay fees are high now

I made around £400 in four months selling dds clothes on Vinted. It's a wake up call that I buy too much in the first place. Its nearly all second hand to start with and I did have 3 years worth of clothes to declutter. Still, I think I'd rather concentrate on dodging buying more than she needs and letting her trash things.

HMRC can't even be bothered to answer the phone, let alone worry about this.

Government Guidance here

Selling online and paying taxes - information sheet - GOV.UK (www.gov.uk)

It depends what your are buying and what you are selling..,

Money saving expert have advice on this. If you are selling your own belongings then you are not affected by this, no matter how much you sell. The rules haven’t changed.

And guidance with questions you can fill in.

It seems that this lady would not have to pay tax

How did you receive your additional income? – Guidance – GOV.UK (tax.service.gov.uk)

They are looking for small business that don't declare their income, not ladies selling their worn clothes. For example, someone who has a 'hobby' of buying car parts and fixing them up and then sells them at a profit. They aren't interested in your average Vinted seller.

It seems that as items are personal items that were not brought to make a profit and that no item was sold for more than £6000, then this does not need to be declared.

"Personal possessions are physical items that belong to you, such as clothes, furniture or jewellery.
Items that you bought with the intention of selling to make a profit are not classed as personal possessions."

"Have you sold a personal possession for £6,000 or more?Personal possessions could include:

• jewellery
• paintings
• antiques
• coins and stamps
• possessions that are part of a set, such as matching vases or chessmen

This does not include your car (unless you’ve used it for business), or your main home."

I still don't think she's "made money" - I suppose you have to look at the value to her of having the clothes for a bit before she sells them on - instead of donating them / recycling them.

No that limit is for eBay etc to report on

It does not mean you gave to do a tax return. Just hmrc might look into you if it feels like it, but most people could easily show those 30 items were their own goods being resold. They are not going to be demanding receipts for sone old baby grows!

This is my qn really. I understand that the triggers for reporting are 30 items or £1700.

Then as pp stated hmrc will check if it matches their info.
eg tax return

But if there isn’t a tax return then what happens? If there’s no proof of purchase.

eg I’m looking at a stuff with tags that i never used but intended to. No receipts. And it’d be great to sell it to get a bit more cash into my household. Recoup my spends.

It just seems to be yet another rule to keep the masses down.

Having just watched Me hates vs the post office I wouldnt
put it past them to say computer says no and you’re income is incorrect etc

But surely the tagged stuff is a small amount of the whole

And you can probably show that the dress is say Dorothy Perkins 2019 if asked. I assume you'd have one or any style and they'd probably be the same size.

There will be people making £10,000 pa or more via eBay. That's who they will focus on. Why would they look into a £1000 person beyond writing a letter up reminder then of the rules. Hmrc have targets to achieve like the rest of us!

Yes. And usually yes. But with modern banking apps and loyalty cards etc. also storing the data, you can likely do that even without a paper receipt.

No, you deduct the cost of buying those clothes in the first place, so unlikely to be any profit.

This!

There's a minimum 6 months turnaround for HMRC to read a letter FFS - they're not going to be hunting down Jeannie for selling off a few dresses/pairs of shoes that are cluttering up her wardrobe on Vinted!

worn stuff I tend to give to charity. The tagged stuff I want to make my money back on. Styles probably varied! Sizes too.

i get that the aim is to target those running profitable on line businesses. But as with everything there’ll be unintended consequences.

the rules have not changed at all just drawing peoples attwention to the fact that you can't have a trading buisness and just pretend you don't

supposing you have a mulberry handbag that you paid £500 for 15 years ago, even if you sell it for £800 and make a profit this is not trading vecause it was your personal possession so the £300 profit is tax free no tax return required. however if you bought a diamond necklace 15 years ago for £3000 and sold it for £13000 you have made a capital gain of 10,000 that requires a tax return but you have a capital gains allowance and can use last year's too as well

however what is more likely is that you bought a coat 2 years ago for £200 and you now sell for £60 so you have not made £60 it is actually a loss of £140 so again no tax return as it is not a profit and it was your personal possession. The vast majority of stuff sells for less second hand than inital purchase price so no worries for 95% of people selling their own unused items

however if you spot some items at a car boot sale that you realise are undervalued maybe old marvel comics or art deco bakelite jewellery so you buy it and then resell this is trading and you have a personal trading allowance of £1000 a year so if you sell on a few say 3 brooches that you paid £5 for r £75 each you have a profit of £210 well within limits so no bother

I am used to this as I have 2 ebay accounts one is my declared sole trading business account where I buy and sell vintage collectables and ceramics from auctions clearances etc and sell on for profit I sell more than £1000 and do a tax return and pay tax on it I also keep records of expenses as I obviously as a business can deduct what I paid for them, the fees charged by ebay postage , buying boxes bubble wrap packing peanuts etc, my car is registered as a business so I can claim for mileage going to auctions or going to post office.( you can't claim car or travelling costs if not a business) my other account is where we buy and sell our own stuff, it doesn't matter if it is over £1000 a year as it is our stuff not bought to trade. I make sure we don't mix accounts up they have very different names etc

ebay do monthly summaries it says the total sales how much your fees were and postag eif you buy it on ebay so it is easy to see what is what. if you are trading definitely get a second account

So your second account could reach the threshold for reporting and hmrc will investigate it. It’s the how that bothers me. I’m sure you’d be able to provide proof of purchase but if you couldn’t?

They would take a common sense view

A coyple if dresses you are selling on used which breaches the limit is very different to soneone selling on tons of the same item in different sizes.

They just look for patterns

If you are buying clothes for yourself, wearing them and then selling them on - they are personal assets and you are not trading

HMRC are looking at people who are buying clothes with the specific purpose of reselling for a profit. So people selling multiples of the same item, multiple sizes, etc