Sold 30 items on Vinted? Don't worry if you receive a tax message

Jazz vocalist Billie van der Westhuizen began selling her unused clothes and shoes on Vinted about six months ago. "I quickly got hooked and started listing a lot of items," she recalls. "Then I received a message asking for my National Insurance number, and I had no idea why."

Vinted now requests users NI numbers if they have sold 30 items or earned 1,700 in a year, which has left many sellers puzzled and anxious about potential taxes.

However, this isnt due to new taxes. Its part of reporting rules for online marketplaces and platforms that facilitate sales, including eBay, Etsy, Depop, and Airbnb.

Billie, 30, from London, submitted her NI number as prompted but admits she wasnt entirely sure why. "I just entered it, thinking theres no way I could be taxed on the money Ive made," she says. "Ive probably made around 500, selling items for less than I paid."

The notification directs Vinted users to a form requesting their name, address, and NI number, as required by UK law.

Many sellers have shared screenshots of the prompts on TikTok and Instagram, asking whether providing their information means theyll owe taxes. One Reddit user wrote: "Vinted is asking for my National Insurance number. Do I have to pay tax? I barely make any money herewhat if I ignore it?"

Chartered accountant Abigail Foster explains that most casual sellers have nothing to fear. "If youre only selling your own second-hand clothes or household items, you wont owe tax even if Vinted shares the details with HMRC," she says. "These rules target people running resale businesses, not those decluttering."

She adds that HMRC can easily identify trading activity by looking for multiple listings of the same item or quick resale of purchased goods at higher prices.

New reporting requirements for digital platforms took effect on 1 January 2024, aiming to reduce tax evasion. Sellers began receiving in-app prompts around this time last year. Vinted is required to report information to HMRC by the end of the calendar year when a seller hits the 30-item or 1,700 threshold.

An HMRC spokesperson stated: "People are responsible for managing their own tax affairs and deciding if they need to file a return for trading income. As your side hustle grows, unpaid tax could be scrutinized, potentially leading to a large bill if undeclared. Staying on top of your tax is crucial."

HMRC research from 2022 indicated that roughly 10% of UK adults took part in the "hidden economy," earning income that was partially or fully unreported to avoid taxes.

UK Tax Rules for Online Selling

• Platforms must report to HMRC anyone selling more than 30 items or earning over 1,700 annually.
• This does not automatically mean tax is owed.
• Selling personal items for less than the purchase price is not taxable.
• Tax applies if buying stock to resell or earning over 1,000 profit per year.
• Selling an item for over 6,000 may require Capital Gains Tax.
• HMRC provides an online tool to check whether you need to declare income.
• Platforms like Airbnb and Vinted share sales data with the tax authority.

Author: Ethan Caldwell