Vinted to alert customers in the event that they attain threshold below new tax guidelines

Vinted will alert users if they have sold more than 30 items or made €2,000 (£1,700) across the year under new tax reporting rules.

Since 1 January, HMRC has required online platforms to collect information about users making extra cash and failing to declare it as income.

The platforms, which include eBay, Vinted and Etsy, then have to report directly to the taxman from 1 January 2025.

It’s intended to make it easier to target people who have slipped under the radar and not declared income made through these platforms.

The rules mean that anyone making 30 transactions in one calendar year will likely be flagged as a potential trader.

Vinted said the rules are not a new tax but said it will require some sellers to ‘submit a short, most pre-filled form through our platform, and does not change members’ existing tax obligations.’

The forms, which are likely to be sent towards the end of the year, will require sellers to confirm details Vinted has collected from their account and to input their National Insurance number.

However, the form will only be sent to sellers who reach a threshold of selling more than 30 items or generating 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 report form, Vinted said it doesn’t necessarily mean they will need to pay taxes.

A spokesman said: ‘Submitting a seller report form on Vinted has nothing to do with whether you need to pay taxes or not.’

When the new rules came into effect earlier this year, there was some confusion over whether it meant people doing a clear-out, or selling unwanted gifts, would be stung with extra taxes.

However, none of the rules have changed, merely that platforms will have to report information directly to HMRC – the tax office has always had the power to request this information.

As is already the case, sellers will only need to pay tax if their earnings reach a certain threshold.

The current rules dictate that you may have to pay tax if you’re classed as a ‘trader’ meaning that you would have to pay tax on anything you make over £1,000.

However, if you are selling 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 will not have to pay any tax on it unless the item is sold for £6,000 or more, and sellers can use the £3,000 CGT allowance for any profits.