Vinted’s latest alerts: What the new tax rules mean for those who sell more than 30 products
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This plan is part of HMRC’s effort to ensure that everyone pays the correct amount of taxes on their additional income.
Let’s break down what these changes mean for you and how they could affect your selling.Vinted’s new alert system
Vinted will start alerting users if they’ve sold more than 30 items or earned over EUR2,000 (PS1,700) in a calendar year. These alerts are part the platform’s duty to report certain activity to HMRC, under the new rules which came into effect on 1 January 2024.
However this does not necessarily mean that you will owe tax.
How is this going to affect you?
HMRC’s new rules aim to ensure people who make extra money on online platforms declare it correctly. If you have been selling online as a business it is important to understand the tax rules.
Remember that 30 transactions per year, or 1,700 PS in sales is the key number. If you pass either of these, Vinted will flag you as potentially needing to submit a form to HMRC.
However, it’s important to understand that this isn’t a new tax. The forms Vinted will send you are pre-filled and require you to confirm your details. You’ll also need to provide your National Insurance Number. You will only be taxed when your earnings exceed certain thresholds. If you are selling old items for a loss, or decluttering, then you may not be taxed.
Also, any single item sold for less than PS6,000 doesn’t incur tax, and you can use your Capital Gains Tax allowance of PS3,000 on profits from higher-value sales.
Clearing up confusion
There was some initial confusion about whether these new rules would mean extra taxes for people just selling unwanted items or old gifts. HMRC always had the right to ask for this information.
The key difference now is that platforms like Vinted will automatically report this to the tax office if you pass the 30-item or PS1,700 threshold.
What should you do?
If you regularly sell online, monitor your transactions to ensure you know your current position. Remember that if you earn less than PS1,000 by selling your personal items, then you will not be taxed. Even if your account is flagged, that doesn’t mean you will owe any money. These new tax reporting regulations are designed to catch those who may be trading online and not paying tax. However, the impact on casual sellers will be minimal.
Keep an eye on your sales and stay informed. You’ll be fine. Money-making enthusiast and father to Naomi. He’s always on the lookout for new ways to make a little more money.
