No Need to Worry About Tax After Selling 30 Items on Vinted

Jazz vocalist Billie van der Westhuizen began her journey on Vinted approximately six months ago, selling off clothing and footwear that had been collecting dust in her wardrobe.

“I really got into it and found myself selling a lot of items,” she explains. “Then I received a notification requesting my National Insurance number, and it was quite unclear why this information was needed.”

For Vinted users like Billie, who have sold 30 items or generated sales exceeding £1,700 within a year, the request for their National Insurance number has sparked confusion, with many fearing potential tax liabilities.

This requirement is not indicative of any new tax regulations; rather, it stems from compliance rules for digital platforms that facilitate the buying and selling of goods and services, similar to eBay, Etsy, Depop, and Airbnb.

Billie, a 30-year-old resident of London, complied with the request for her NI number but later questioned the necessity of it. “I submitted it, but I doubted they could tax me on such a small amount,” she remarked. “I estimate I’ve made around £500, and I’m selling items for less than their original purchase price.”

The alert that Billie encountered directs Vinted users to a form requiring their name, address, and National Insurance number, as mandated by UK legislation.

Several Vinted sellers have taken to social media platforms like TikTok and Instagram to share screenshots of similar notifications, seeking clarity on whether they must provide their details and if this would result in taxation.

One Reddit user inquired, “Vinted is requesting my National Insurance number. Does this mean I have to pay taxes? I hardly earn anything on Vinted—what are the consequences of ignoring this?”

Chartered accountant Abigail Foster reassures users that while the request for tax information may cause anxiety, most sellers need not be concerned. “If you’re merely offloading your own second-hand clothes or household items, you won’t owe any taxes, even when Vinted sends that information to HMRC,” she explains.

Foster clarifies that these regulations target individuals operating a resale business rather than those simply clearing out their closets. The HMRC can easily detect if someone is engaged in trade by looking for multiple listings of identical items or products bought and quickly resold at a profit.

New reporting mandates for digital marketplaces began on January 1, 2024, with the government asserting that these measures will aid in combating tax evasion.

Last year, Vinted sellers reported receiving in-app prompts regarding their NI number around this same time. According to Vinted, information must be submitted to HMRC by the end of the calendar year once sellers meet the threshold of 30 items sold or £1,700 in sales.

An HMRC representative stated: “Individuals are accountable for their own tax obligations and must evaluate whether they need to file a tax return for their trading income. As your side business expands, any unpaid taxes could come under scrutiny, potentially leading to an unexpected and significant tax bill if you haven’t disclosed your additional earnings. It’s crucial to remain informed about your tax responsibilities.”

Research commissioned by HMRC in 2022 indicated that approximately one in ten adults in the UK engage in what is termed the “hidden economy”—income that is partially or wholly concealed from tax authorities to evade taxation.

Digital platforms are required to inform HMRC about any seller exceeding the 30-item or £1,700 sales threshold. However, this does not necessarily imply that these individuals will incur tax liabilities. Selling personal items is not taxable if they are sold for less than their original cost, as there is no profit made. Tax obligations arise only when one purchases stock for resale or earns more than £1,000 in gross income annually. Additionally, if an item sells for over £6,000, there may be a requirement to pay Capital Gains Tax.

To verify whether you need to report your income, you can utilize HMRC’s Help For Hustles online tool.