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- Online platforms will be required to report directly to HMRC from 1 January 2025
Vinted will notify users if they have sold more than 30 items or earned €2,000 (£1,700) during the year under new tax reporting rules.
From 1 January, HMRC requires online platforms to collect information on users who earn extra money and do not declare it as income.
Platforms, including eBay, Vinted and Etsy, will have to report directly to the tax agency from 1 January 2025.
Tax bill: Those who use apps like Vinted could face problems if they sell too much due to new rules
The aim is to facilitate the location of people who have gone unnoticed and have not declared the income obtained through these platforms.
The rules mean that anyone who makes 30 transactions in a calendar year will likely be flagged as a potential trader.
Vinted said the rules are not a new tax, but will require some sellers to “submit a short, mostly pre-filled form via our platform, and do not change members’ existing tax obligations.”
The forms, which will likely be sent out towards the end of the year, will require sellers to confirm the details Vinted has collected from their account and to enter their national insurance number.
However, the form will only be sent to sellers who reach a sales threshold of more than 30 items or generate more than €2,000 (approximately £1,700) in sales in a calendar year.
While the platform will help sellers who need to complete an HMRC reporting form, Vinted said that does not necessarily mean they will have to pay tax.
A spokesperson said: “Filing a seller report form with Vnted has nothing to do with whether you have to pay taxes or not.”
When the new rules came into force earlier this year, there was some confusion over whether that meant people who cleaned or sold unwanted gifts would be hit with extra tax.
However, none of the rules have changed, simply the platforms will have to report the information directly to HMRC (the tax office has always had the power to request this information).
As is already the case, sellers will only have to pay taxes if their profits exceed a certain threshold.
Current rules dictate that you may have to pay tax if you are classed as a “trader”, meaning you would have to pay tax on any amount you earn above £1,000.
However, if you sell your old items at a loss, you are unlikely to be classed as a trader.
Even if you have made a profit on an item, you won’t have to pay any tax on it unless the item sells for £6,000 or more, and sellers can use the £3,000 CGT allowance for any profit.
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Includes 0.88% bonus for one year
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