Selling on Vinted? Here’s What You Really Need to Know About UK Tax Rules
Ever sold a few clothes on Vinted and wondered, “Do I need to tell HMRC about this?” You’re not alone. With the rise of second-hand marketplaces like Vinted, thousands of UK users are making extra cash by decluttering wardrobes — but many don’t realise that earning too much could trigger a tax obligation.
So, how much can you actually earn on Vinted before you have to pay tax in the UK?
The short answer: You can earn up to £1,000 per year tax-free under the UK’s Trading Allowance — but it depends on how you sell, not just how much.
In this guide, you’ll discover:
The exact thresholds that trigger tax reporting
How HMRC decides if you’re a business or just having a clear-out
What you need to do to stay compliant and avoid penalties
Let’s unpack what HMRC expects — and how to stay on the right side of the law while making the most of your Vinted side hustle.
Do You Have to Pay Tax on Vinted Sales in the UK?
Yes, in some cases — Vinted sales can be taxable if you’re earning money regularly or making a profit. Not every sale triggers tax, but once your selling activity starts to look like a business, HMRC takes an interest.
✅ If you’re just clearing out old clothes…
You’re probably not liable for tax — especially if:
- You’re selling personal items for less than you originally paid
- You sell occasionally, not as a consistent income stream
- You don’t buy items specifically to resell
Think of it like a virtual car boot sale — if it’s genuinely casual, HMRC usually isn’t concerned.
❌ But if you’re selling for profit or frequently…
You may be classed as trading, meaning:
- Your Vinted income might be taxable
- You could need to register as self-employed
- You may be required to submit a Self Assessment tax return
Even if it starts small, regular reselling activity can trigger tax obligations — and yes, HMRC has ways of tracking online income.
Tip: HMRC looks at intent, frequency, and profit — not just the amount.
How Much Can You Earn on Vinted Before Paying Tax?
You can earn up to £1,000 per year tax-free on Vinted under the UK’s Trading Allowance. This allowance applies to casual or side-income from selling goods or services online — including platforms like Vinted, Depop, or eBay.
But it’s not always that simple. Let’s break it down:
What Is the £1,000 Trading Allowance?
The Trading Allowance is a tax-free threshold introduced by HMRC for people with small, casual incomes. If you earn less than £1,000 from selling in a tax year (6 April to 5 April), you usually:
Don’t need to register as self-employed
Don’t need to file a tax return
Don’t pay any tax on that income
Important: This is total income — not profit. Even if you made just £200 profit, if you took in £1,100 in total sales, you may still need to report it.
When Does the Allowance Reset?
The trading allowance resets every tax year — from 6 April to 5 April.
If your income goes above £1,000 in any tax year, you need to either:
- Register with HMRC and file a Self Assessment, or
- Claim allowable business expenses and deduct them instead of the allowance.
Does It Include All Online Selling Platforms?
Yes. The £1,000 trading allowance is based on total online income, not per platform.
Includes:
Vinted
Depop
eBay
Etsy
Facebook Marketplace
So if you make £500 on Vinted and £600 on Depop, that’s £1,100 total income — you’re now over the threshold and may need to file.
Quick Summary:
You can earn £1,000 per tax year across all online platforms tax-free. Once you exceed this, you may need to register with HMRC and report your income — even if it’s just a side hustle.
When Are Vinted Sales Considered a Business?
You might wonder: when does selling on Vinted go from being a casual side hustle to a full-on business in the eyes of HMRC? This distinction matters because it determines whether you need to pay tax and register as self-employed.
HMRC uses what’s called the “badges of trade” — a set of guidelines to decide if your selling activity counts as trading (i.e., a business) or just a hobby.
Some key factors HMRC looks at include:
Frequency and volume of sales: If you’re regularly listing lots of items and making multiple sales a week or month, it leans towards business activity.
Profit motive: Buying items specifically to resell at a profit is a strong indicator of trading.
Organisation and record-keeping: Keeping business-like records, advertising, or having a professional setup suggests a business.
Type of items: Selling second-hand personal goods occasionally is usually casual; selling new or refurbished goods frequently suggests business.
Intent: Are you selling to make a profit, or just decluttering?
For example, if you bought 20 handbags intending to resell them on Vinted and do this often, HMRC may classify this as trading. But if you’re just selling your own clothes occasionally, you’re likely seen as a hobby seller.
Understanding these signs can help you avoid surprises when HMRC reviews your sales.
Do I Need to Register with HMRC for Selling on Vinted?
Whether you need to register with HMRC depends mainly on the nature and scale of your selling activity. If your Vinted sales are casual and below the £1,000 trading allowance, you usually don’t have to register or file a tax return.
However, if you exceed the £1,000 threshold, or if HMRC considers your selling activity a business, you’ll need to register for Self Assessment as self-employed.
Registering means:
You declare your income from Vinted in a tax return each year.
You pay income tax on profits above your personal allowance.
You might also pay National Insurance contributions depending on your earnings.
How to Register:
- Visit the official HMRC website.
- Set up a Government Gateway account if you don’t have one.
- Register for Self Assessment and provide basic details about your business activity.
- You’ll receive a Unique Taxpayer Reference (UTR) number.
- File your tax return by the deadline (usually 31 January after the tax year ends).
It’s important to register within 3 months of starting your business to avoid penalties.
How Does HMRC Know About My Vinted Sales?
Many casual sellers assume that because Vinted is a peer-to-peer platform, their income stays “under the radar.” But in reality, HMRC is increasingly focused on digital marketplaces — and it has several ways of identifying unreported income.
Platform data sharing
Under recent international agreements and UK tax compliance measures, platforms like Vinted may be required to share seller data with HMRC. While Vinted is based in Europe, upcoming rules (like the OECD’s “DAC7” directive) mean even EU-based platforms will report seller information to UK authorities.
This includes:
- Your total sales revenue
- The number of transactions
- Your bank or PayPal account details
You may not see this happening behind the scenes, but the information can be passed along during audits or in bulk under data-sharing laws.
Your bank statements can also tell a story
If HMRC suspects you’re under-reporting income, they can review your bank accounts for patterns of frequent incoming payments. Regular deposits from Vinted or similar platforms can trigger questions.
For example, receiving dozens of payments labelled “Vinted” over several months — especially for similar amounts — could suggest trading activity.
Don’t rely on invisibility
Even if you’re not flagged right away, HMRC can go back up to 20 years in cases of deliberate tax evasion. That’s why it’s better to stay compliant and keep records — even if you’re under the threshold now.
Are Second-Hand Personal Items Taxable?
Generally, no — if you’re selling your own used items for less than you paid, you won’t owe tax. HMRC does not tax private individuals on the occasional sale of personal possessions that have depreciated in value.
For example, if you bought a jacket for £100 and later sell it on Vinted for £30, that’s not taxable income. It’s a loss, not a profit — and therefore outside the scope of UK tax laws.
But there are exceptions to watch for:
If you’re consistently buying with the intention to resell — or flipping items for a profit — that changes things. Even if the items are second-hand, your motive and pattern of sales could mean you’re “trading,” not just selling personal belongings.
Also, certain items may attract Capital Gains Tax if sold for large profits — such as:
Valuable antiques
Collectable art
Designer pieces that appreciate in value
But for most people selling used clothes and accessories on Vinted, these rules won’t apply.
If you’re selling personal items you no longer need — and you’re not making a profit — it’s unlikely to be taxable.
If you’re reselling for gain, tax rules kick in.
How to Stay Tax Compliant When Selling on Vinted
If you’re selling regularly on Vinted, even casually, it’s smart to stay on top of your income. Being proactive can help you avoid penalties, stress, or awkward letters from HMRC later on.
Keep simple records
Even if you’re under the £1,000 trading allowance, it’s a good idea to track your income and expenses. Keep a spreadsheet or notebook where you log:
- The date and amount of each sale
- What you sold
- What you originally paid (if applicable)
- Any platform fees or postage costs
This makes life much easier if you go over the threshold or need to complete a tax return in the future.
Understand your thresholds
Remember:
If your total income from online sales stays under £1,000 per tax year, you probably don’t need to report it.
If you exceed £1,000, you may need to register with HMRC and file a tax return.
Use the allowance wisely
You can either:
Claim the £1,000 trading allowance (no receipts needed), or
Deduct actual business expenses (if they’re higher and you keep proof)
You can’t do both — so choose whichever gives you the better result.
Don’t ignore letters from HMRC
If HMRC contacts you about your online selling, respond honestly and promptly. Ignoring them could result in penalties, even if you weren’t aware you had to declare your income.
Smart Tips & Strategies for Selling on Vinted Without Tax Trouble
You don’t need to be an accountant to stay tax-compliant on Vinted — but a little strategy can go a long way. Whether you’re selling occasionally or turning it into a side hustle, these tips will help you earn confidently and avoid costly mistakes.
1. Track Your Earnings from Day One
Even if you’re just testing the waters, start a simple income tracker. Use a spreadsheet or app to log each sale. This gives you clarity on whether you’re approaching the £1,000 threshold.
2. Stick to Personal Sales if You Want to Stay Under the Radar
Clearing out your own wardrobe? Keep it casual and avoid sourcing items just to flip. If your sales are low-volume and not profit-driven, you’re more likely to stay outside HMRC’s scope.
3. Don’t Mix Personal and Business Payments
Use a separate PayPal or bank account for Vinted if you’re selling more frequently. This keeps your records clean and makes it easier to identify income if needed.
4. Know When to Go Pro
If you’re regularly selling for profit, embrace it. Register as self-employed, claim the right expenses, and treat it like a business. There are tax advantages once you’re legit — like claiming postage, supplies, and even mobile phone costs as expenses.
5. Keep an Eye on Rule Changes
Digital platforms are under more scrutiny than ever. From 2025, platforms like Vinted may start reporting your data directly to HMRC. Staying informed helps you stay compliant.
Pro Tip:
Even if you don’t owe tax now, keeping records and understanding your obligations puts you ahead of the game. You’ll save time and stress if your side hustle grows.
Common Mistakes Vinted Sellers Make with Tax (and How to Avoid Them)
Even well-meaning sellers can slip up when it comes to tax. Here are some of the most common mistakes people make when selling on Vinted — and how to stay one step ahead.
❌ Assuming “It’s Just a Hobby” Means No Tax
Selling casually doesn’t always mean you’re exempt. If you’re consistently making profit or selling regularly, HMRC may view it as a business — even if it feels like a hobby.
❌ Not Tracking Sales from the Start
It’s easy to forget how much you’ve earned if you’re not keeping records. That £10 skirt here and £20 jumper there can add up fast. Without a total figure, you won’t know if you’ve crossed the £1,000 threshold.
❌ Ignoring Other Platforms
HMRC counts all your online selling income together — not just Vinted. If you’re also selling on eBay, Depop, or Facebook Marketplace, your combined income might put you over the limit.
❌ Forgetting to Register on Time
Once you cross the threshold or are “trading,” you’re expected to register with HMRC within 3 months. Miss that window and you could face penalties, even if you pay the tax later.
❌ Thinking HMRC Can’t See What You’re Doing
With new data-sharing rules, platforms like Vinted are under pressure to report seller earnings. Even if it’s not happening yet, it’s coming — and bank records tell their own story.
Avoid these mistakes by treating your selling like a business — even if it’s just a part-time hustle. Better to stay safe than sorry.
Can I Turn My Vinted Side Hustle Into a Legit Business?
Absolutely — many UK sellers start out casually and grow their Vinted shop into a reliable income stream. If you’re flipping fashion, buying stock to resell, or hitting consistent monthly earnings, it might be time to go pro.
Here’s how to make the shift:
- Register as self-employed with HMRC — it’s simple, free, and only takes a few minutes online.
- Claim business expenses like packaging, postage, and seller fees to reduce your tax bill.
- Track profit, not just sales. Tools like spreadsheets or free apps can help.
- Set business goals: Do you want to earn a few hundred extra a month or go full-time?
- Consider branding: A consistent shop name, quality photos, and customer service all add credibility.
Becoming a small business also opens doors. You can explore bulk buying, build a customer base, or even expand to platforms like Depop or Etsy.
Turning your Vinted hustle into a business isn’t just about tax — it’s about taking control of your income.
Pros and Cons of Earning Money on Vinted (Tax-Wise)
Selling on Vinted can be fun, flexible, and even profitable — but like any income stream, it comes with responsibilities. Here’s a quick overview of the pros and cons, especially from a tax and compliance perspective.
✅ Pros
- Tax-free earnings up to £1,000
The UK’s trading allowance gives you a generous head start. If you stay under the limit, you usually don’t need to register or report. - Easy entry with minimal setup
You can start selling your own clothes without registering a business, applying for licenses, or needing upfront investment. - Potential to build a real business
Once you understand the tax rules, you can scale confidently — turning a hobby into a steady income stream. - Expense deductions available once registered
If you go beyond the £1,000 threshold and register, you can deduct legitimate business costs (like shipping, supplies, and phone bills) to reduce your taxable income.
⚠️ Cons
- Earnings can become taxable without warning
You might not realise you’ve crossed the threshold — especially if selling on multiple platforms. That could lead to late registrations and penalties. - Confusion between personal sales and business activity
It’s not always clear where HMRC draws the line. “Hobby” sellers can accidentally fall into trading territory without realising it. - More admin once you’re self-employed
If you register, you’ll need to track income, claim expenses, and file a Self Assessment each year. It’s manageable, but still a responsibility. - Changing platform rules
New regulations (like data-sharing with HMRC) are on the horizon. What feels casual now may become more tightly monitored soon.
Summary Tip:
Selling on Vinted is low-risk and flexible — but once the money starts flowing, knowing your tax status is key.
Start smart, track early, and scale with confidence.
Know the Rules, Sell with Confidence
Selling on Vinted is a brilliant way to declutter, earn extra cash, or even kickstart a profitable side hustle. But as your sales grow, so does the importance of staying tax-aware.
Here’s the key takeaway:
You can earn up to £1,000 per year tax-free — but if you go over that or start reselling for profit, HMRC expects you to take action. Staying compliant doesn’t have to be scary, and with the right advice, it can even open doors for business growth.
🤝 Need Tax Help for Your Vinted Side Hustle?
Whether you’re:
- Unsure if your income is taxable
- Confused about registering as self-employed
- Ready to grow your Vinted shop into a real business
Eternity Accountants is here to help.
We specialise in guiding UK-based online sellers through self-assessment, business setup, and tax-saving strategies — so you can focus on what you do best: selling.
👉 Book a free consultation today and let’s make sure your Vinted journey is profitable and compliant.
🔗 Visit Eternity Accountants | 📧 info@eternityaccountants.com
