HMRC has issued a two-week warning to anyone who sells on Vinted and other secondhand sites. The Labour Party government’s tax department has cautioned that UK households must settle any due tax by January 31 – or face a penalty.
The tax authority reports that over 7.4 million people have already filed for the 2023 to 2024 tax year, but millions still haven’t completed their returns. If you’re selling items online, you need to have made more than £1,000 within one tax year, and you must be trading for profit.
This year’s rules have changed, meaning platforms like Vinted or eBay are required to inform HMRC about sellers who make more than 30 transactions in a year, or sell goods worth over £1,700. You may need to file a return if you are newly self-employed and earned a gross income of more than £1,000 in the tax year.
Other reasons might include earning below £1,000 but wanting to voluntarily pay Class 2 National Insurance Contributions to protect your state pension or access other benefits, being a new partner in a business partnership, or receiving any untaxed income over £2,500. Additional reasons could be if you receive Child Benefit payments and need to pay the High Income Child Benefit Charge because you or your partner earned more than £50,000.
If you used to self-assess but believe you no longer need to file, perhaps because you’re now employed full time, you need to notify HMRC using the online form, reports Birmingham Live.
A spokesperson for Vinted commented: “Reporting members’ details to the authorities does not necessarily lead to taxation. Taxation is a separate matter that doesn’t depend on HMRC reporting.”
They further explained: “HMRC requires Vinted to collect information from members who meet the criteria mentioned above, regardless of whether or not their earnings are taxable.”