How much can you sell on vinted before paying tax

Thinking of decluttering your wardrobe and making some extra cash on Vinted? You’re not alone. But here’s the question every UK seller is now asking: how much can you sell on Vinted before paying tax?

The short answer: if you earn under £1,000 a year from platforms like Vinted, you may not need to pay tax—but that depends on how often you sell, what you’re selling, and whether HMRC sees you as a casual seller or a trader.

With new tax reporting rules in effect from 2024, platforms like Vinted must now share your earnings with HMRC if you cross certain thresholds. So whether you’re selling a few pre-loved outfits or flipping fashion full-time, it’s crucial to know the rules to avoid unexpected tax bills.

In this guide, we’ll break it all down—clearly, legally, and in plain English.

What Does HMRC Say About Casual Selling vs. Trading?

HMRC makes a clear distinction between:

Casual selling: One-off or irregular sales of personal items, like decluttering your wardrobe.

Trading: Regular buying and selling with the intent to make a profit.

The moment your sales look like a business—even if it’s just a “side hustle”—you may need to register as self-employed and report your income.

Key signs you’re trading:

• Repeated, frequent sales
• Buying items specifically to sell
• Modifying or enhancing products before reselling
• Marketing your sales actively (e.g., on social media)
• Earning a noticeable profit

Tip: Even without a physical shop, if you act like a business, HMRC treats you like one.

When Are Vinted Sales Considered a Business?

HMRC uses something called the “badges of trade” test—a set of criteria to determine whether you’re trading or not.

Your Vinted selling might be considered a business if:

• You’re buying clothes in bulk or sourcing second-hand stock
• You consistently sell with the goal of making a profit
• You’re reinvesting your Vinted earnings into new inventory
• You have a system or pattern of selling

This applies even if you only sell part-time or from home.

Examples: Casual Selling vs. Running a Vinted Business

If you’re just selling your old clothes here and there, you’re likely safe. But if you’re using Vinted to make regular profits, HMRC may expect you to register and pay tax.

How Much Can You Sell on Vinted Before Paying Tax?

In the UK, you can sell up to £1,000 per tax year on Vinted without paying tax—thanks to the trading allowance. But there’s a catch: this only applies if your sales are considered casual and not part of a business.

This £1,000 threshold is a key limit set by HMRC. If your total income from Vinted and other similar platforms (like eBay or Depop) stays below it during the tax year, and you’re not running a business, you likely won’t owe anything or need to report it.

But the moment your earnings go over this amount—or your selling activity starts to look like trading—you may need to register with HMRC and file a tax return.

£1,000 Trading Allowance Explained

The trading allowance is a tax-free amount that allows individuals to earn up to £1,000 from self-employment or casual sales without paying income tax or needing to register as self-employed.

It applies to:

• Income from selling goods online
• One-off services like babysitting or tutoring
• Side hustles that don’t count as formal employment

If you earn more than £1,000 in a tax year, you have two choices:

1. Deduct the £1,000 trading allowance from your gross income and pay tax on the rest, or
2. Deduct actual business expenses if you keep records of them

But in both cases, you’ll need to register for self-assessment and declare your income.

What If You Go Over the £1,000 Limit?

The moment your total online sales income exceeds £1,000, you must tell HMRC. Even if your profits are small, exceeding the allowance means you’re technically self-employed and must declare that income.

Don’t wait to be chased. HMRC will soon be receiving detailed income reports directly from platforms like Vinted—so staying proactive is essential.

You’ll be expected to:

• Register for self-assessment
• Keep records of your sales and expenses
• Submit an annual tax return

And yes, even if you only earn £1,100, it still counts as over the limit.

Quick Summary

You can sell up to £1,000 tax-free on Vinted per year under the trading allowance. If you go over or sell as a business, you must register with HMRC and file a tax return.

How Will HMRC Know What I Sold on Vinted?

As of 2024–25, Vinted is required to report seller income to HMRC if you pass certain thresholds. This is part of new tax transparency rules that apply to all major online marketplaces operating in the UK.

So if you’ve ever wondered, “How would HMRC even find out?”—the answer is: they’ll be told directly by Vinted.

New Data-Sharing Rules from 2024–25

In January 2024, the UK joined the OECD tax transparency initiative. Under these rules, digital platforms like Vinted must report sellers’ income and transaction details directly to tax authorities like HMRC.

This is meant to close the tax gap caused by informal selling online and to ensure that people who make money on platforms like Vinted, Etsy, Depop, or eBay are playing by the same rules as traditional businesses.

The rules apply whether you’re registered as a business or not.

Does Vinted Report My Earnings to HMRC?

Yes, Vinted now reports seller income to HMRC if either of these conditions are met in a tax year:

You make 30 or more sales, or

You earn £2,000+ (around £1,700) total from your sales

Even if you don’t hit the threshold, your activity may still be recorded internally and passed on upon request from tax authorities.

That means your Vinted account isn’t as private as it used to be—and trying to hide your income is now much riskier.

What Information Does Vinted Collect and Share?

When required, Vinted will share the following details with HMRC:

• Your name and email address
• Your bank or payout account details
• The number of transactions you’ve made
• Your total earnings from those transactions
• Your delivery address and possibly IP address

This allows HMRC to compare your reported income with actual marketplace records. If there’s a mismatch, you could be investigated or fined for underreporting.

In short: Yes, HMRC can—and likely will—know how much you sold on Vinted.

What Counts as Taxable Income on Vinted?

Any money you make from selling items for profit on Vinted may count as taxable income—especially if you’re doing it regularly or as a side hustle. But if you’re just selling your old clothes occasionally, you’re usually in the clear.

The key difference comes down to intent and profit motive. HMRC doesn’t tax you for selling your own used belongings at a loss, but if you’re buying or sourcing items to sell at a profit, that’s when it becomes taxable.

Let’s unpack the grey areas that often confuse sellers.

Selling Personal Items vs. Flipping for Profit

If you’re selling secondhand clothes that you previously bought for personal use—like clearing out your wardrobe—HMRC doesn’t usually consider that taxable. Most of these items are sold at a loss, and there’s no profit being made.

However, if you’re buying clothes at charity shops, car boot sales, or even on Vinted itself just to resell them for more, that income is considered trading. The same goes if you’re reselling items gifted to you with the intention of making money.

Once you’re in profit-making territory, your Vinted income becomes taxable—even if you’re not officially registered as a business yet.

What If I Sell Gifts or Unwanted Items?

Selling unwanted gifts is generally not taxable, as long as they were not bought with the intent to sell. HMRC tends to overlook occasional, low-value sales of personal belongings.

However, repeatedly selling new, unused items—even if they were technically gifts—could raise questions, especially if the volume is high or the profits are significant.

Remember, frequency matters. Selling five random items a year is different from selling 50 “gifts” every month.

Can I Deduct Costs Like Postage or Platform Fees?

Yes—if you’re trading, you can deduct reasonable costs associated with your Vinted sales. These could include:

• Postage and shipping fees
• Packaging materials
• Vinted selling fees (if applicable)
• Costs of goods sold (i.e., what you paid for the items you’re reselling)

But these deductions only apply if you’re over the £1,000 trading allowance and reporting your income to HMRC.

If you’re under the allowance and not registered as self-employed, you don’t need to worry about deducting expenses—just keep track in case you cross the threshold later.

Selling your own used clothes occasionally? You’re likely safe. Flipping items for profit regularly? That income is taxable and must be declared.

Do I Need to Register as Self-Employed to Sell on Vinted?

You need to register as self-employed if your Vinted sales are classed as trading or your income exceeds the £1,000 tax-free allowance in a tax year.

Even if you’re only doing it part-time, selling online for profit counts as self-employment in the eyes of HMRC. If your activity looks like a business—even a small one—you have a legal obligation to register and declare your income.

This doesn’t mean you need to form a company. Most small sellers register as sole traders, which is the simplest form of self-employment in the UK.

When Should I Tell HMRC I’m a Sole Trader?

HMRC expects you to register for self-assessment by 5 October following the end of the tax year in which you crossed the threshold.

For example:

If you earned over £1,000 from Vinted between 6 April 2024 and 5 April 2025, you must register as self-employed by 5 October 2025.

Delays or failure to register could result in penalties—even if you didn’t know about the rules.

So if you’re consistently selling on Vinted or already see your side hustle growing, it’s safer to register early.

How to Register for Self-Assessment (Simple 3-Step Guide)

Step 1: Create a Government Gateway Account
Go to gov.uk/register-for-self-assessment and set up your login.

Step 2: Register as Self-Employed (Sole Trader)
Fill out the online form and choose “sole trader.” HMRC will send you a Unique Taxpayer Reference (UTR) number by post.

Step 3: Keep Records and Submit Tax Returns Yearly
From now on, track your income and expenses, and file your tax return online each year—usually by 31 January.

It’s easier than it sounds, especially with basic accounting apps or spreadsheets.

If your Vinted selling goes beyond casual, registering as self-employed keeps you on the right side of tax law—and avoids surprises down the line.

How Do I Pay Tax on My Vinted Earnings?

To pay tax on your Vinted income in the UK, you must file a self-assessment tax return and report your earnings to HMRC. This is a yearly process and applies if you’re self-employed or have earned over the £1,000 trading allowance.

Even if your Vinted profits seem small, once you cross the reporting threshold, you must follow the proper steps—just like any other side hustle or freelance income.

Overview of the Self-Assessment Process

Self-assessment is how individuals in the UK report income that isn’t taxed at source. For Vinted sellers, that means declaring what you’ve earned (and spent) during the tax year.

Here’s what the basic process looks like:

• Keep a clear record of your sales and related expenses
• Log in to your HMRC account (or create one if new)
• Fill out the self-assessment form online
• Submit it by the deadline

The return calculates how much tax (and possibly National Insurance) you owe based on your profit—not your total sales.

Deadlines for Filing and Paying Tax in the UK

Tax returns follow the same schedule every year:

• 5 April: UK tax year ends
• 5 October: Deadline to register for self-assessment
• 31 January: Deadline to file your return and pay any tax due

So, if you made over £1,000 from Vinted between April 2024 and April 2025, your return is due by 31 January 2026.

Missing deadlines can lead to automatic fines, even if you didn’t owe much—so mark your calendar early.

How to Keep Track of Your Sales and Expenses

Good records make tax time much easier. You don’t need fancy software—just keep a spreadsheet or use a simple app to log:

• Each item sold (date, price)
• Postage and packaging costs
• Vinted fees (if applicable)
• Any other related expenses (e.g., storage, supplies)

Saving receipts and screenshots of your transactions can help if HMRC ever asks for proof.

Tip: Set aside a portion of your earnings throughout the year—around 20–30%—so you’re prepared for any tax you owe.

Common Questions About Tax on Vinted (FAQs)

Can I Sell Clothes Without Paying Tax?

Yes—if you’re selling your own used clothes occasionally and earn less than £1,000 in a tax year, you don’t need to pay tax. This is considered casual selling and falls under the HMRC trading allowance. However, once you start selling frequently or with profit in mind, it becomes taxable.

What If I Sell Items for Charity or on Behalf of Someone Else?

If the money doesn’t go to you personally and you’re not keeping the profits, you likely won’t need to pay tax. However, HMRC could still question the activity if it looks like regular trading. It’s a good idea to keep clear records showing where the money went—especially for charity-related sales.

Will I Get in Trouble If I Don’t Report My Vinted Income?

Yes—you could face penalties, fines, or even a tax investigation if you earn over the threshold and don’t report it. Now that Vinted shares seller income with HMRC, unreported earnings are more easily flagged. If you’re unsure, it’s safer to register and report than to risk non-compliance.

Do I Need to Pay Tax If I Only Sold Once?

Probably not. One-off or very occasional sales of personal items usually don’t count as taxable income. But if that one sale pushes you over the £1,000 threshold—or it was part of a pattern—it’s worth reviewing your overall activity for the year.

Quick tip: When in doubt, check your total earnings and ask yourself whether your selling looks like a business. That’s what HMRC will do.

Common Mistakes Vinted Sellers Make About Tax (And How to Avoid Them)

Many people selling on Vinted make simple but costly mistakes when it comes to tax. Knowing these pitfalls can save you stress, fines, and even legal trouble.

1. Assuming Casual Sales Are Always Tax-Free

One of the biggest errors is thinking all sales on Vinted are exempt from tax. While selling your old clothes occasionally probably isn’t taxable, if you sell regularly or for profit, HMRC expects you to declare that income.

Ignoring this can lead to penalties later, especially since platforms now report your earnings.

2. Not Keeping Proper Records

Failing to track sales, costs, and expenses is a huge problem. Without good records, it’s tough to prove what you earned or spent—making your tax return inaccurate or incomplete.

Even if you’re under the £1,000 allowance now, keeping records sets you up well if your side hustle grows.

3. Waiting Too Long to Register as Self-Employed

Many sellers delay registering with HMRC, thinking they’ll “deal with it later.” This can lead to fines if you miss the 5 October registration deadline after the tax year.

Registering early avoids penalties and keeps you in control of your finances.

4. Forgetting That Postage and Fees Are Deductible

If you’re trading and filing a tax return, remember that costs like postage and Vinted fees can reduce your taxable profit.

Not claiming these expenses means paying more tax than necessary.

5. Ignoring New Reporting Rules

Since 2024, platforms like Vinted report seller earnings to HMRC automatically. Trying to hide income or avoid declaring sales is riskier than ever.

It’s better to be transparent and compliant from the start.

Avoid these common mistakes by staying informed, keeping good records, and registering on time. It’s the best way to enjoy selling on Vinted without tax worries.

Summary — What You Need to Remember

• You can sell up to £1,000 per tax year on Vinted without paying tax, thanks to HMRC’s trading allowance.
• Selling occasionally from your own wardrobe usually doesn’t count as taxable income.
• If you sell regularly or for profit, HMRC may treat you as running a business—meaning you must register as self-employed and pay tax.
• From 2024, Vinted reports seller earnings to HMRC if you exceed certain thresholds (30+ sales or £2,000+ income).
• Keep clear records of your sales, fees, and postage costs—these help when filing your tax return.
• Register for self-assessment by 5 October after the tax year you go over the £1,000 limit.
• File your tax return and pay any tax owed by 31 January following the end of the tax year.

If you’re unsure about your tax situation, consulting a UK tax professional can save you time and avoid penalties.

Final Thoughts + What to Do Next

Selling on Vinted is a great way to declutter and earn extra cash—but staying on top of your tax responsibilities is key to keeping your side hustle stress-free and legal.

If you’re just selling a few items here and there, you probably don’t need to worry much. But if you’re approaching or passing the £1,000 threshold, or if your selling feels more like a business, don’t delay.

Here’s what to do next:

1. Track your sales and expenses carefully — use a simple spreadsheet or accounting app.
2. Register for self-assessment with HMRC before the 5 October deadline if you exceed the allowance.
3. Keep all receipts and records of your sales, postage, and fees.
4. File your tax return on time by 31 January each year.
5. Consider consulting a UK tax advisor if you’re unsure about your situation or want help maximizing deductions.

By following these steps, you’ll avoid penalties and keep your Vinted earnings working for you—without surprises from HMRC.

Need help managing your Vinted income or filing your tax return? Contact a trusted UK tax specialist today to get expert support tailored to your needs.