Do I have to declare my vinted sales? What online sellers need to know about HMRC
For thousands of people clearing out wardrobes on Vinted, the question keeps coming back: do I have to declare my sales to HMRC?
If you are simply selling items, you already own – such as clothes, toys or household goods – you will generally not have to pay Income Tax on those sales. HMRC states that selling personal possessions is normally not taxable, provided the circumstances do not amount to trading.
There is an important chattel exception where any single personal possession such as jewellery, art, or antiques, sold for £6,000 or less is completely exempt from CGT, regardless of how much profit you made.
Online Platforms
Recent changes requiring online platforms to report information about sellers to HMRC has caused confusion among casual sellers, with some fearing that selling unwanted clothes could automatically trigger a tax bill. But HMRC has stressed that the reporting rules do not represent a new tax on selling personal possessions.
When does Vinted selling become a business?
The situation changes when someone is buying or making goods with the intention of selling them for a profit.
HMRC considers this potentially a trading activity. This could include regularly buying clothes from charity shops, car boot sales or wholesalers and then reselling them online for more than they cost.
If total gross trading income exceeds the £1,000 trading allowance during a tax year, the seller may need to inform HMRC and register for Self-Assessment.
Crucially, the £1,000 figure refers to gross income or receipts, not profit. Sellers therefore need to keep appropriate records and understand the distinction between simply selling possessions and operating a business.
Why is Vinted reporting sales to HMRC?
Since 1 January 2024, digital platforms have been subject to rules requiring them to collect information about sellers and, in certain circumstances, report it to HMRC.
Generally, platforms must report sellers who make 30 or more sales of goods in a calendar year or receive more than £1,700 from those sales. Platforms provide sellers with a copy of the information reported.
But receiving a report or a message from Vinted saying information has been shared does not automatically mean tax is owed.
HMRC’s position is clear: the reporting system helps the tax authority identify potentially taxable activity, but it does not change the underlying tax rules. For anyone unsure, HMRC recommends using its online checker to determine whether additional income needs to be declared.
For the casual seller clearing out a wardrobe, the answer is usually reassuring. However, for the growing reseller turning Vinted into a side business, it may be time to start keeping records and talking to HMRC.
Maebh Warnock is a Trainee Accounting Technician at Abac, Chartered Accountants.
This article is for general information only. You are recommended to seek professional advice before taking action on the basis of the contents of this article.
