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.

even if you sell on 30 dresses in one year they are almost certainy not all brand new they will all be different patterns and styles and roughly the same size you may have sizes 12, 14 and 16 a few might even be brand new with tags but not all 30. But you wouldn't have 30 dresses in exactly the same pattern and colour in sizes from 6-26 all brand new with tags as a private seller selling your own stuff

it is quite easy to tell when looking at the what has sold whether it is reasonably personal stuff. Before I retired they checked NHS dentists against their colleagues as prescrbing patterns for treatments are very close in a given area for certain types of patients so if someone was claiming a much higher rate of root canal treatments than their local colleagues it would be flagged, most likely there was an explantion such as this dentist specialised in this type of treatment within their practice but occasionaly it might be rogue especially if a high incidence of extractions of the same teeth within a few months. so someone selling quite a few landrover parts might be someone who used to repair their own cars and is now getting rid of garage stuff but occasionally it maybe someone basically running a spare parts business under the radar someone selling their excess garage supplies will not have 20 left side headlights

Personal items are not trading stock but they can become so. It is possible to become a trader if clothes are bought and sold for a profit from Vinted while also selling personal clothes that have been worn. The latter would then become part of the business and have a cost equal to market value when you appropriate them into your business under the rule in Sharkey -v- Wernher which now has a statutory footing.

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

Not strictly true because if you are buying and selling accessories and jewellery then the handbag and diamond necklace can become trading stock also.

It does not follow that any high value item is capital gain. It can become classified as trading stock if the facts fit. If it does not and CGT applies, there is a marginal relief for chattels which limits the gain to 5/3 of the excess proceeds above £6,000. Though not appropriate for your example (because the actual gain of £10,000 is lower) it is a relevant relief in other situations. Btw, the CGT allowance cannot be carried forward from the previous year. You may be thinking of the annual IHT gift exemption of £3,000.

My dh is setting up an eBay shop…with stuff he’s bringing home from work. So it’s all free and he’s making the profit.

He works at the local rubbish tip. The amount of brand new and vintage stuff that comes in is ridiculous

I am sure that's not allowed under Local Authority Rules?

That sounds dodgy

Has he got permission to do this?

Which sounds like exactly the sort of person they will be checking for tax liabilities

Does he work for the council? Will there be any kind of tax from them, I can't see a private business allowing employees to do that

Yes he’s allowed to bring things home. They all do it and he has verbal permission from head office

I think once one takes shankley rules into account we are beyond a mumsnet thread

When the daffodils are out, he could pull over on his way home and shear great handfulls up and resell them at car boot sales. By using some elastic bands he finds at the recycling centre he could fasten them into standard sized bunches.

Not at all the same is it? He is literally recycling stuff people have chucked away that would either go to landfill or be burned.

I think it is a good idea. It would only go to landfill otherwise. He could still do the daffodils though. Or blackberries in the Autumn.

Would people pay for daisies?

Probably not…

but to give you an idea of some of the stuff he brings home (we are keeping this as it’s useful to us):-

brand new pair of heelys worth £35 online

a black and decker handheld car hoover £50. Never even been unboxed..

a Cath kidston pet bed. Never used. The dog had died. That’s another £50 online

a gorgeous looking watch. Don’t know the approximate for that but someone here will wear it.

He’s bought me home a winter coat. I can’t remember what brand but it’s in brand new condition and it’s so comfy.

He also brought me home a particular mug I’ve been eyeing up. I’ve been wanting for one a long time but couldn’t justify paying £30 for it. Lo and behold, someone actually threw one away. No box but it’s still in brand new condition and I’m chuffed to bloody bits.

The kids have had no end of books and toys brought home. Ds has a bat man alarm clock and a ninja Lego man night light.

Honestly, it’s ridiculous what people are throwing away.

Hea brought home rugs that are in a brand new condition simply because they are redecorating and wanted to change the theme. We go through rugs here. I have dogs and sometimes they have accidents so the rugs are handy and easily replaceable for free

It’s crazy what people are throwing away. I’m fascinated. My local residents group are always giving away things as it now doesn’t fit with new decor.

It's laziness as well

At least take it to a charity shop

My tip has an area for household items. I’d always assumed they would be donated to charities or schemes like those for low income households setting up home.