All Vinted users sent important 30 sales warning

Spring cleaning is a fine time to get around to deep cleaning the oven, weeding the garden, and, for many of us, decluttering. As many a Vinted user will attest, selling off your old belongings is a handy way to make some easy money and tidy up in one fell swoop.

Complicating matters, however, is potentially having to pay tax on what you earn. Most people won’t be taxed on their extra cash, but it’s important to know if you’re one of them — or risk paying a fine. Platforms including Vinted, eBay and Etsy now share sales data with the Government, so online sellers could be in for an unpleasant surprise.

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HMRC can detect and tax earnings made from online sales. The reporting regulations mean that online platforms send HMRC data on users who make 30 or more sales a year — regardless of profit — and those whose gross sales exceed £1,700.

UK tax professionals have issued a warning to online sellers. Lee Murphy, managing director of The Accountancy Partnership, said: “HMRC uses data provided by the platform, whether this is Etsy, Vinted or even eBay, to match against each individual’s tax records.”

The trading allowance is a tax exemption that means you can make £1,000 by working for yourself without having to declare the earnings to HMRC. This applies to things like freelancing or renting your home out on Airbnb — not decluttering.

So, in most cases, if you’re selling your old belongings, you don’t need to report to HMRC or pay tax on it.

But if the trading allowance does apply, Murphy said: “Those who’ve exceeded an annual trading allowance of £1,000, and also fail to declare this, may receive reminder letters to ensure that they get their tax return done. While you may think this is just a scare tactic, ignoring these types of letters may lead to further full tax inquiries and criminal investigations.”

Who pays tax on Vinted sales?

If you’re selling personal possessions, you probably do not have to pay Income Tax. You pay no tax if the money you make on Vinted over a year is less than what you paid for them.

Martin Lewis’ website, Money Saving Expert, explained it further: “In almost all cases, if you just flogged stuff you already had lying around, you don’t need to tell HMRC or pay any tax on this.

“The one exception is if you sold a single item for £6,000 or more, or if you sold all or part of a set of things (eg, a chess set) to a single person for £6,000 or more.”

The Government website laid out the following example that will apply to most spring cleaners: “You’re clearing out your attic and decide to sell your unwanted items using online marketplaces. None of the items you sell are worth more than £6,000.

“It’s unlikely that you’ll need to tell us about this income or pay any tax, no matter how many items you sell.

“If you’re selling personal possessions, you probably do not have to pay Income Tax on these.”

They note that personal possessions might include things like:

• Clothing
• Ornaments
• Kitchen equipment
• Table and chairs
• Jewellery
• Computers and phones

So, who is HMRC watching? Murphy explained who is at risk of being caught out: “If you are selling unwanted personal items and not making repeat trades or dropshipping, then you’re unlikely to face HMRC scrutiny.

“If you do, however, earn over £1,000 from your side hustle each year, or you exceed 30 sales within one year, then you must let HMRC know about this to avoid getting any fines or being under any sort of criminal investigation.”

He recommended online sellers look at their records to determine the number of items sold and their total earnings.

You could even make some money back, he noted: “Also keep track of any expenses that’ve gone with the sales; stamps, postage materials and courier payments, as you could get some of this back when the time comes to doing your Self-Assessment tax form.”