Vinted's new warnings: what the latest tax rules mean if you sell more than 30 items

If you sell on platforms like Vinted, eBay, or Etsy, the new rules mean you can be alerted if you've sold a certain amount of items or made a set amount of money.

This is all part of HMRC's plan to make sure everyone pays the right amount of tax on their extra income.

Let's break down what these changes mean for you and how they can affect your sales.

Vinted's new warning system

Vinted will start warning users if they have sold more than 30 items or earned more than €2,000 (£1,700) in a calendar year.

These warnings are part of the platform's obligation to report certain user activity to HMRC under new rules that come into effect on 1 January 2024.

However, this does not mean that you will owe any tax.

How does this affect you?

HMRC's new rules are about making sure people who make extra money on social media declare it properly.

If you are selling on these platforms as a business, it is important to know the tax rules.

A key number to remember is 30 transactions a year or £1,700 in sales. If you pass any of these, Vinted will mark you as potentially needing to submit a form to HMRC.

However, it is important to understand that this is not a new tax.

The forms sent by Vinted will usually be pre-filled, requiring you to confirm details and provide your National Insurance number.

Will you have to pay tax?

Just because you're tagged, doesn't mean you automatically have to pay tax.

You will only be taxed if your income exceeds certain limits.

For example, if you are classed as a 'trader'—which usually applies if you make more than £1,000 a year—you may have to pay tax on your profits.

But if you're selling your old stuff at a loss or just liquidating your home, you're probably in the clear.

Also, any single item sold for less than £6,000 is tax-free, and you can use your Capital Gains Tax allowance of £3,000 on profits from higher value sales.

Clearing the confusion

There was initial confusion about whether the new rules would mean more taxes for people who simply sell unwanted items or old gifts.

The fact is that HMRC has always had the power to request this information.

The main difference now is that platforms like Vinted will automatically report this to the tax office if you exceed the limit of 30 items or £1,700.

What should you do?

If you sell online regularly, monitor what you're doing to make sure you know your current position.

Remember, if you earn less than £1,000 from selling your stuff, you won't be charged tax. And even if you're tagged, it doesn't automatically mean you'll owe.

But if you run an online business, make sure you declare your income and follow the proper tax rules.

These new tax reporting rules aim to catch people who may trade online without paying tax, but the impact will be minimal for most traditional traders.

Keep track of what's sold, stay informed, and you'll never have to worry about it.