Selling on Vinted? You could owe tax — even if you’re just clearing out your wardrobe.
Thousands of people across the UK are using platforms like Vinted, eBay, and Depop to sell pre-loved clothes and make extra cash. But here’s the surprise: HMRC is watching — and many casual sellers don’t realise they may be crossing the tax line.
Whether you’re a student flipping outfits, a side hustler growing a resale business, or simply decluttering your closet — it’s crucial to understand the rules on tax for Vinted sales.
The good news? You may not owe a penny — if you know where the thresholds lie and how to stay compliant.
In this guide, you’ll learn:
- When Vinted sales become taxable
- What the £1,000 trading allowance means
- How to report income to HMRC (without stress)
- What happens if you don’t — and how to avoid penalties
Let’s start with the most common question…
Do You Pay Tax on Vinted Sales in the UK?
Yes, you may need to pay tax on Vinted sales in the UK — but only if you’re trading like a business or earn over certain thresholds.
Selling second-hand items is often tax-free — especially if it’s your own personal stuff. But the moment you start buying to sell, earning regularly, or treating Vinted like a side hustle, you’re stepping into taxable territory.
Here’s what HMRC considers:
You may not need to pay tax if:
- You’re only selling your own used clothes or items you no longer need
- It’s a one-off clear-out (not frequent selling)
- You earn less than £1,000 total from all side sales in a tax year
You likely need to pay tax if:
- You’re buying items to resell for profit
- You sell regularly or in volume (like a mini shop)
- You earn over £1,000 in total from Vinted, eBay, Etsy, Depop, or other platforms combined
HMRC doesn’t tax your old jeans — but it does tax a side business. And with new digital reporting laws, it’s harder than ever to fly under the radar.
Next, let’s break down what that £1,000 trading allowance really means.
What’s the £1,000 Tax-Free Allowance?
If you’re wondering whether your Vinted sales are taxable, one key rule you need to know is the £1,000 trading allowance.
This is a tax-free threshold introduced by HMRC that allows individuals in the UK to earn up to £1,000 per tax year from casual income or side hustles — without needing to register as self-employed or submit a tax return.
So, if you’re just selling a few bits on Vinted here and there and your total earnings from all platforms (not just Vinted, but also places like eBay, Etsy, Depop, or Facebook Marketplace) are under £1,000 in total, you won’t owe tax, and you usually don’t have to report it.
But — and this is important — once you go over that £1,000 threshold, even by a few pounds, HMRC expects you to either register for self-assessment or claim allowable expenses to reduce your tax bill. Many people miss this and get caught out later.
Think of the trading allowance as a buffer — not a blanket exemption.
Here’s a quick example:
You sell old clothes on Vinted and make £850 in a year — you’re under the threshold, no tax needed. But if you sell £1,150 worth, HMRC wants to know. You now need to file a tax return (unless expenses bring you back under £1,000).
Also, note that the £1,000 applies to total income from all similar online selling, not just Vinted. If you make £600 on Vinted and £500 on eBay in the same year, you’ve passed the line.
Understanding how this allowance works is key — especially if you’re on the edge of turning your selling into a steady side income.
Next, let’s figure out how HMRC decides if your Vinted activity is a hobby or a business.
Is Selling on Vinted a Hobby or a Business?
HMRC doesn’t tax your hobby — but it will tax you if it sees you running a business.
One of the most common questions Vinted users ask is: “I’m just selling old clothes — surely I don’t need to pay tax?” And in many cases, that’s true. But the difference between a hobby seller and a trader lies in your intent and behaviour — not just your earnings.
If you’re simply selling unwanted clothes or shoes from your own wardrobe, and it’s occasional, you’re likely operating as a private individual. HMRC doesn’t usually treat that as taxable income.
But if you’re buying items to resell, listing frequently, or treating Vinted like a side hustle, HMRC may consider you a sole trader — even if it’s not your main job.
Here’s how to tell the difference:
Ask yourself:
- Are you buying stock intentionally to resell at a profit?
- Do you list items frequently and consistently, not just seasonally?
- Are you packaging and promoting your listings like a mini business?
- Do you sell similar types of items, like branded clothing, in batches?
If you said yes to most of those, HMRC may see you as running a trading activity — and that means you’ll need to report your income and possibly pay tax.
“Is selling on Vinted a hobby or business?”
— If you sell occasionally and don’t earn over £1,000, it’s likely a hobby. But if you buy to sell, earn consistently, or list often, HMRC may consider it a business — and that means tax.
In short, it’s not just about how much you earn — it’s about why and how you sell.
Next, let’s explore when you need to register as self-employed if your Vinted sales go beyond the casual level.
When Do You Need to Register as Self-Employed?
You must register as self-employed if your Vinted income exceeds £1,000 in a tax year — or if HMRC considers you to be ‘trading’.
Even if you think of your Vinted sales as “just a bit of extra cash,” HMRC may see it differently — especially if your activity looks like a small business. And once you hit the £1,000 threshold, there’s no grey area: you’re required to register for Self Assessment.
This is where many casual sellers get caught off guard. They assume that because it’s not full-time or official, the rules don’t apply — but HMRC’s guidelines are based on behaviour, not job titles.
Here’s what to do if you qualify:
When to register:
You must register by 5 October following the end of the tax year in which you went over the £1,000 limit. The tax year runs from 6 April to 5 April.
Example: If you earned £1,400 from Vinted between April 2024 and April 2025, you need to register as self-employed by 5 October 2025.
Once registered, you’ll need to:
- Submit an annual Self Assessment tax return
- Keep track of your income and expenses
- Pay Income Tax and possibly Class 2 or Class 4 National Insurance depending on how much you earn
You can register online via HMRC’s website in under 20 minutes. It’s free, and once you’re set up, you’ll get a UTR (Unique Taxpayer Reference) — your ID for future filings.
Remember: registering doesn’t mean you’ll definitely owe tax — especially if your allowable expenses reduce your profit. But it does mean you’re officially in the system — and that keeps you safe from penalties later.
Up next, let’s break down how to actually report your Vinted income to HMRC once you’re registered.
How to Report Vinted Income to HMRC
To report Vinted income, you need to file a Self Assessment tax return — even if it’s a small side hustle.
Once you’re registered as self-employed, HMRC expects you to submit a tax return every year — usually online. This is where you declare how much you earned, what expenses you had, and calculate how much tax (if any) you owe.
Even if your profit is low or you think it’s not worth it, you’re still responsible for filing if your income went above the £1,000 trading allowance.
Here’s how the process works, step by step:
Step 1: Track your income
Keep a record of all your Vinted sales. You can export data from your account or keep a spreadsheet. Include the date, item sold, and amount earned.
Step 2: Record your expenses
You’re allowed to deduct allowable business expenses. This might include packaging, postage, fees, and even a portion of your phone bill or home workspace if it’s related to selling.
Step 3: File your return
The tax year runs 6 April to 5 April. You must submit your tax return by:
31 October (paper return)
31 January (online return)
When you file, you’ll enter your total income, total expenses, and any other earnings (like a main job salary, if you have one). HMRC will then calculate what tax and National Insurance you owe.
“How do I report income from selling on Vinted?”
— You need to register for Self Assessment, track your earnings and expenses, then submit a tax return by 31 January each year.
Don’t wait until the deadline. The earlier you file, the sooner you’ll know what you owe — and avoid late penalties.
Coming up next: Is Vinted reporting your sales to HMRC anyway? Let’s talk about new data-sharing rules.
Does Vinted Share Your Sales Info with HMRC?
Yes — starting in 2024, Vinted (and other online platforms) are required to report your sales data to HMRC if you meet certain thresholds.
Thanks to new global transparency rules, platforms like Vinted, eBay, and Etsy are no longer just selling hubs — they’re now also data providers for tax authorities.
This is part of the OECD’s DAC7 regulations, which have now been adopted in the UK. The goal? To close the tax gap and make sure online income doesn’t go unreported.
Here’s what that means for you:
If you’re a UK resident and sell more than:
- 30 items in a year, or
- Earn £2,000+ (around £1,700) in total sales in a calendar year,
then Vinted must report your income directly to HMRC.
Even if you don’t meet these thresholds, platforms can still collect and store your data — and HMRC has the power to request access during audits or investigations.
“Does Vinted report your income to HMRC?”
— Yes, under new rules, Vinted must report seller data to HMRC if you make over €2,000 or sell 30+ items in a year.
So even if you don’t file a tax return, HMRC may already know how much you’ve made — and that’s why it’s safer to be proactive and stay compliant.
In the next section, we’ll look at what happens if you don’t report your Vinted sales and the potential consequences.
What Happens If You Don’t Report Your Vinted Sales?
If you don’t report taxable income from Vinted, you could face penalties, interest, or even an HMRC investigation.
Many casual sellers assume that “small side income” isn’t a big deal — but the reality is that HMRC is getting smarter. With new data-sharing rules, it’s easier than ever for them to match platform-reported sales data with your personal tax records.
If you fail to report your earnings when you’re supposed to, HMRC can issue:
- Late filing penalties — starting at £100
- Interest on unpaid tax
- Fines for underreporting income
- In serious cases, civil investigations or criminal charges
Let’s be clear: HMRC isn’t out to punish someone who sold a few old coats and didn’t know better. But if you’ve crossed the £1,000 line, sold regularly, or were clearly trading and chose not to declare it, you’re at risk.
What if it was a mistake?
If you realise you’ve underreported or missed a return, it’s often better to voluntarily correct it. HMRC tends to be more lenient when you come forward, rather than waiting to be caught.
“What happens if I don’t report Vinted income to HMRC?”
— You could face fines, interest, or penalties. HMRC now receives sales data from Vinted, so it’s safer to report and stay compliant.
The best defence? Keep records, know your thresholds, and don’t assume HMRC isn’t watching.
Next, let’s shift from warnings to helpful strategies: How can you make your Vinted selling tax-smart and stress-free?
Tax Tips for Vinted Sellers (UK)
If you’re making money on Vinted, a few smart tax habits can save you stress — and possibly money.
Whether you’re just getting started or already earning consistently, treating your Vinted activity like a mini business (even if it doesn’t feel like one) can help you stay organised, avoid surprises, and make confident decisions when it’s time to deal with HMRC.
Here are the most important tax-smart tips for UK-based Vinted sellers:
1. Track Every Sale — From Day One
Even if you think you’ll stay under the £1,000 threshold, keep a basic record of your sales. Vinted doesn’t give you a full tax summary (yet), so it’s up to you to log dates, item names, and amounts earned.
Pro Tip: Use a simple spreadsheet or a free app like Wave or Notion to track sales as you go. It’ll save you hours later.
2. Keep Receipts and Note Expenses
Selling online comes with costs — and you can claim many of them as tax-deductible business expenses if you’re registered.
Common allowable expenses:
- Packaging materials (boxes, tape, tissue)
- Postage and shipping costs
- Vinted platform fees
- Mobile data (if used for listing and messaging)
- A portion of your internet or workspace (if used for your side hustle)
These expenses reduce your taxable profit, not your income — which means less tax owed, if any.
3. Separate Your Finances
It’s easy to mix personal and side hustle money, but separating them is a game-changer. Open a dedicated digital bank account or Monzo-style pot just for your Vinted income and expenses. It helps with visibility, reporting, and making your business feel… real.
4. Use the £1,000 Allowance Wisely
If your profit is under £1,000 total, you can use the trading allowance instead of claiming expenses. But you can’t do both — so choose whichever gives you the better outcome.
Example:
Earned £980 = No need to file
Earned £1,400 but had £500 in expenses? You can either claim the £1,000 allowance OR deduct the £500. Whichever reduces your tax best.
5. Register Early If You’re Growing
If you’re starting to earn steadily, or buying stock to resell, don’t wait until the last minute to register as self-employed. Doing it early gives you time to plan, organise, and avoid late registration penalties.
6. Talk to a Tax Professional (Especially If You’re Scaling)
If you plan to grow your resale business — or just don’t want to mess up your taxes — getting expert help is smart. An accountant can:
- Help you legally reduce your tax bill
- Set up bookkeeping systems
- Spot deductions you might miss
- File your Self Assessment properly
Need help? A firm like Eternity Accountants can guide you step-by-step, from registration to tax returns — so you can focus on selling, not stressing.
Up next, let’s answer the most frequently asked questions UK Vinted sellers are Googling and asking Other sources — in quick, direct answers.
FAQs About Tax on Vinted Sales (UK)
❓How much can I sell on Vinted before paying tax?
You can earn up to £1,000 per tax year under the trading allowance without paying tax or registering with HMRC. This includes total income from all platforms (Vinted, eBay, etc.) — not just one.
❓Do I pay tax if I’m only selling old clothes?
If you’re just selling personal, second-hand clothes occasionally, and it’s not for profit, you likely don’t need to pay tax. But if you’re selling regularly or treating it like a business, tax rules apply.
❓What happens if I go over £1,000 on Vinted?
Once you earn more than £1,000, you’ll need to register for Self Assessment, declare your income, and possibly pay tax after deducting any allowable expenses.
❓Can I claim expenses like postage and packaging?
Yes — if you’re registered as self-employed, you can claim allowable business expenses like packaging, postage, Vinted fees, and more. These reduce your taxable profit.
❓Does Vinted give me a tax summary?
Currently, Vinted doesn’t provide a full tax summary. You need to track your own income and expenses, though new regulations may push platforms to add this feature in the future.
❓Is there VAT on Vinted sales?
Most casual Vinted sellers don’t need to worry about VAT. But if your turnover exceeds the VAT threshold (£90,000 as of 2025), you may need to register — this is rare for private sellers.
❓Will HMRC know how much I made on Vinted?
Yes — if you meet thresholds (over €2,000 or 30+ sales), Vinted is now required to report your sales to HMRC under new digital platform reporting laws.
❓Can HMRC fine me for not reporting Vinted income?
Yes. If you don’t report income you were legally required to declare, HMRC can issue penalties, interest, or even launch an investigation — especially now that they’re receiving platform data.
What Common Tax Mistakes Do Vinted Sellers Make?
Many Vinted sellers in the UK make simple tax mistakes that could lead to penalties — or missed savings.
It’s easy to assume that selling second-hand items is too small for HMRC to care about. But with digital platforms now reporting data directly to tax authorities, those “small mistakes” can quickly become big problems.
Here are the most common errors UK sellers make when it comes to tax on Vinted sales:
1. Thinking “It’s Just a Few Sales” Means “No Tax”
Even a small number of transactions can cross the £1,000 threshold — especially if you sell high-ticket or branded items. Many sellers forget that sales from all platforms count together (e.g. Vinted + eBay + Facebook Marketplace).
2. Not Keeping Records of Sales or Expenses
Without records, you can’t prove what you earned or spent — and that makes tax returns (or audits) stressful. Some sellers also forget to track postage or fees they could legally deduct.
3. Missing the Deadline to Register as Self-Employed
Once you go over £1,000, you must register with HMRC by 5 October after the end of the tax year. Many wait too long and end up with late registration penalties.
4. Using Personal Accounts and Mixing Finances
Keeping your Vinted earnings in your main bank account creates confusion. It’s easy to lose track of what’s business vs personal — especially when filing taxes.
5. Ignoring Platform Data Reporting
Some sellers believe HMRC won’t find out. But Vinted is now legally required to report high-earning or high-volume sellers. If HMRC’s data shows a mismatch, you could face questions — or fines.
6. Not Asking for Help Early Enough
Waiting until you get a penalty notice or letter from HMRC is too late. Tax doesn’t have to be complicated — and a quick chat with an accountant could save you money, time, and stress.
“What are common tax mistakes for Vinted sellers?”
— Not tracking income, missing the £1,000 limit, failing to register on time, and ignoring new reporting rules.
Coming up next is the final wrap-up: a quick recap, important reminder, and call to action to help readers take the next step confidently.
Stay Compliant, Sell Smart
Selling on Vinted can be a fantastic way to make extra cash — whether you’re decluttering your wardrobe or building a side business. But as we’ve seen, understanding tax rules is essential to avoid surprises with HMRC.
Here’s a quick recap:
- You don’t pay tax if your total sales across all platforms are under the £1,000 trading allowance.
- If you sell regularly or make over £1,000, HMRC expects you to register as self-employed and report your income.
- New laws mean Vinted now reports your sales data to HMRC, so staying transparent is safer than risking penalties.
- Keep good records of all sales and expenses — it makes filing easier and could reduce your tax bill.
- Avoid common mistakes by registering on time, tracking everything carefully, and seeking expert help if you’re unsure.
Ready to sell smarter and stay compliant? If tax feels overwhelming, you don’t have to navigate it alone.
📞 Contact Eternity Accountants today for friendly, expert help with your Vinted taxes — from registration to tax returns and everything in between. Keep your side hustle profitable and stress-free!
