Vinted Tax Rules UK

Selling on Vinted? Here’s What HMRC Wants You to Know

Think you can casually sell on Vinted and skip the tax talk? Think again.

Whether you’re clearing out your wardrobe or running a side hustle, HMRC is now paying attention to how much you earn on platforms like Vinted. And yes — you might owe tax.

As of 2024, online marketplaces are legally required to report your income directly to HMRC. That means the days of “nobody’s watching” are over.

But here’s the good news: not everyone owes tax, and the rules aren’t as scary as they sound — if you understand them.

In this complete guide, we’ll break down everything you need to know about Vinted tax rules in the UK — from thresholds and trading allowances to what counts as a business and how to stay compliant.
You’ll also get simple steps to check if you need to register, how to file, and how to avoid penalties.

Let’s start with the most common question…

Do You Need to Pay Tax on Vinted Sales in the UK?

Yes — if your income from Vinted exceeds £1,000 in a tax year or it qualifies as business activity, you may need to pay tax and report it to HMRC.

HMRC doesn’t care whether you’re selling old clothes or flipping vintage finds — if you’re earning, it might be taxable income.

Here’s what matters:

If you make less than £1,000 per tax year, you’re covered by the trading allowance, and don’t need to report your income.

If you exceed £1,000, or operate in a business-like way (more on this later), you must declare your earnings.

Selling items you originally bought to resell? That’s a business in HMRC’s eyes — and taxable.

Quick Summary:
Vinted income under £1,000/year? Likely no tax.
Over £1,000 or business activity? You need to declare and possibly pay tax.
HMRC now receives data directly from Vinted (as of 2024).

Still unsure if your selling counts as “income”? In the next section, we’ll explain the £1,000 trading allowance in detail — and when it applies.

What Is the £1,000 Trading Allowance and How Does It Work?

Not every Vinted seller needs to worry about tax — and the £1,000 trading allowance might be your best friend.

If you’re only selling occasionally — like decluttering your wardrobe or shifting a few unwanted shoes — you may not owe HMRC a penny. Why? Because the government gives you a tax-free allowance of up to £1,000 per year on income from casual trading or “side gigs.”

Here’s how the trading allowance works:

You can earn up to £1,000 in gross income (total sales before any costs) from Vinted or similar platforms each tax year without needing to declare it.

If your income stays below £1,000, there’s no need to register as self-employed or file a tax return — even if you’re using Vinted regularly.

But if you earn over £1,000, you must report the full amount to HMRC through a Self-Assessment tax return — not just the amount over £1,000.

Example:
If you made £950 selling old clothes in a year — no tax, no return.
If you made £1,050 — you must register with HMRC and declare the full £1,050.

Can you claim expenses instead of using the £1,000 allowance?

Yes — if you think your actual business expenses exceed £1,000, you can skip the allowance and claim allowable expenses instead. But you can’t do both.

When Are Vinted Sales Considered a Business?

Just because you’re selling second-hand clothes doesn’t mean it’s “just a hobby” — and HMRC might not agree with you.

If you’re using Vinted more frequently or with the intention of making profit, your activity might be classed as a business, not a one-off sale — which means you’re subject to income tax and possibly National Insurance.

How does HMRC decide if you’re “trading” on Vinted?

HMRC uses a set of criteria called the “Badges of Trade” to assess whether your activity looks like a business. You don’t need to meet all of them — just a few could be enough.

Signs your Vinted sales may be seen as business activity:

• You buy items specifically to resell at a profit
• You’re selling regularly or in large volumes
• You promote or advertise your Vinted profile
• You keep stock at home or track your profits
• You make improvements to items before selling (e.g. tailoring clothes)

Tip:
Selling a few old jumpers? Likely a hobby.
Buying in bundles from charity shops to resell? You’re a trader.

What does this mean for you?

If HMRC believes you’re running a business:

• You must register as self-employed
• File an annual Self-Assessment tax return
• Keep proper records of income and expenses

Coming up next:
👉 Do I Need to Register as Self-Employed for Vinted?
This will walk through the exact moment you need to take action — and how to do it the right way. Please stay with us.

Do I Need to Register as Self-Employed for Vinted?

If you’re regularly selling on Vinted with the goal of making money — even as a side hustle — you likely need to register as self-employed.

HMRC doesn’t care if it’s your full-time job or just a weekend gig. What matters is whether you’re earning above the £1,000 trading allowance or running your sales like a business.

You must register as self-employed if:

• Your Vinted income exceeds £1,000 in a tax year
• You buy items specifically to resell for profit
• You operate in a business-like manner (e.g., regular listings, branding, sourcing stock)

Even part-time or student sellers need to register if they meet the criteria — age or job status doesn’t exempt you.

When is the deadline to register?

If you need to register for self-employment:

You must do it by 5 October following the end of the tax year in which you earned the income.

Example: If you earned over £1,000 between 6 April 2024 and 5 April 2025, your deadline to register is 5 October 2025.

How to register:

1. Go to: https://www.gov.uk/register-for-self-assessment
2. It takes around 10 minutes
3. You’ll get a Unique Taxpayer Reference (UTR) by post

Once registered, you’ll need to file a Self-Assessment return every year — even if you stop selling later.

Do You Have to Declare Vinted Sales to HMRC?

Yes — if you earn over £1,000 from Vinted in a tax year, you’re legally required to declare that income to HMRC.

Whether you’re a casual seller or running a side hustle, once your earnings cross the trading allowance, you must report your Vinted income through a Self-Assessment tax return.

Here’s what you need to declare:

Total income from Vinted (not just profit)

Any allowable expenses if you’re self-employed

Other income (like employment, interest, or other platforms like eBay, Etsy, etc.)

Reminder: You don’t just declare income over £1,000 — you report the entire amount once the threshold is passed.

Key deadlines to remember:

What happens if you don’t declare it?

• £100 fine for missing the deadline — even if you owe no tax
• Interest and penalties if HMRC finds you’ve underreported
• Risk of compliance checks as HMRC gets data directly from Vinted (more on that next)

Does HMRC Get Reports from Vinted?

Yes — as of January 2024, Vinted is required to share your sales data with HMRC.

This isn’t just a rumour. It’s part of new international tax rules under the OECD’s DAC7 directive, which the UK has adopted. Platforms like Vinted, eBay, Etsy, and others must now report seller income, volume of transactions, and personal details to tax authorities.

What does this mean for Vinted sellers?

HMRC will receive data on your sales automatically — even if you don’t report it yourself

You can no longer assume “they won’t notice”

If your Vinted income is over certain thresholds, expect to receive a letter or compliance check if you haven’t declared it

What information is shared with HMRC?

• Your name, address, and bank details
• Number of transactions/sales
• Total gross income (before expenses)
• Any fees or commission Vinted charged

Note: This applies whether you’re a casual seller or a full-time trader. If your income is above the reporting thresholds, Vinted will include you in their report.

Does this affect private one-off sellers?

Occasional sellers may be excluded from platform reporting if:

You made fewer than 30 sales in a year

Your income was under £2,000 (approx. £1,700)

But if you’re a regular seller or over that limit, Vinted will report your data.

What Expenses Can You Deduct from Your Vinted Income?

If you’re registered as self-employed, you can deduct business-related expenses from your Vinted income — and potentially reduce your tax bill.

Claiming allowable expenses is one of the most effective ways to legally lower the amount of income tax you owe. But you must keep clear records and only claim costs that are wholly and exclusively related to your Vinted activity.

Common Vinted-related expenses you can claim:

• Postage & packaging costs for orders
• Vinted platform fees or selling commissions
• Stationery and shipping supplies (labels, envelopes, etc.)
• Phone or internet costs (proportional use for business)
• Advertising costs if you promote your listings elsewhere (e.g. Facebook Ads)
• Mileage or travel if used to source stock (keep logs)
• Clothing purchased for resale
• Software or tools (e.g., Canva for marketing, accounting software)

Example:
Sold 100 items and paid £200 in postage + £150 in fees? You could deduct £350 from your income before tax is calculated.

You can’t claim:

Personal clothing or items you originally bought for yourself

Costs not directly tied to your Vinted business

Rent or household bills (unless you’re using a dedicated home office, and even then it must be proportionate)

Tips for expense tracking:

Use a simple spreadsheet or accounting tool (like FreeAgent, QuickBooks, or Xero)

Keep receipts and digital invoices

Download your Vinted sales reports for easy tracking

Selling as a Hobby vs Business — What’s the Difference?

HMRC doesn’t care what you call it — if you’re making money consistently, it may count as a business, not a hobby.

Many Vinted users assume that because they’re just “clearing out old clothes,” it doesn’t count as trading. That might be true at first — but once you start selling frequently, buying to resell, or earning beyond £1,000, it likely crosses into business territory.

So, what’s the difference?

Tip: If you advertise, track earnings, and reinvest — HMRC is likely to treat your activity as a business.

Can you “start as a hobby” and turn into a business?

Absolutely. Many sellers begin casually, then see sales pick up and start sourcing more items. Once you hit the threshold or fit the business criteria, you must register and report your income — even if you still view it as a side hustle.

Don’t wait for HMRC to decide for you. It’s better to be proactive and stay compliant.

What Happens If You Don’t Report Your Vinted Income?

Ignoring your Vinted income won’t make it invisible — and HMRC now has direct access to your sales data.

Whether you sell full-time or just on the side, failing to report taxable income can lead to serious consequences — even if you didn’t mean to break the rules.

Here’s what could happen if you don’t report:

Automatic £100 late filing penalty — even if you owe no tax

Interest charges on unpaid tax

Additional penalties of 5% or more if you delay payments or file late

Investigations or compliance checks — especially now that Vinted shares data with HMRC

Real Talk: HMRC doesn’t care if it was “just a few sales.” If your name shows up in platform reports and no tax return follows — you may get flagged.

What if you made a mistake or didn’t know?

HMRC encourages voluntary disclosure — and you’re more likely to get leniency if you report the issue yourself before they contact you.

Here’s what to do if you think you’ve underreported:

Log in to your HMRC account and amend your return

Or contact HMRC’s Voluntary Disclosure Service

Keep clear records and show willingness to cooperate

The safest approach?

If you’re earning money from Vinted — even a few hundred pounds — it’s best to:

• Track everything
• Register early if needed
• Ask for help if unsure (an accountant can clarify things fast)

Final Tips to Stay Compliant as a Vinted Seller

Selling on Vinted can be fun and profitable — but staying on the right side of HMRC is non-negotiable.

Whether you’re just starting out or already making regular sales, a few smart steps can save you from tax stress later.

Here’s how to stay tax-compliant as a Vinted seller:

Know your threshold: Track whether you’re under or over the £1,000 trading allowance

Register early if needed: Don’t wait until you’re caught off guard

Separate personal and business: Use a dedicated bank account or card for your sales if possible

Keep everything digital: Save invoices, Vinted reports, and expense receipts in Google Drive or accounting software

Understand what counts as income: It’s not just profit — it’s your total sales

Seek expert help: If you’re unsure, talk to an accountant who understands online sellers

Pro Tip: Set a reminder for 5 October (registration) and 31 January (tax return) so you never miss a key HMRC deadline.

Staying compliant doesn’t just keep you legal — it also builds the foundation for a more professional, scalable Vinted side business.

Don’t Get Caught Out by Vinted Tax Rules

If you’re selling on Vinted in the UK, it’s no longer “just a bit of cash on the side.” HMRC is watching — and with platforms now reporting your income directly, it’s your responsibility to stay informed, stay registered, and stay compliant.

Whether you’re selling occasionally or turning it into a business, the key is understanding the rules before the taxman knocks.

Quick Recap:

The £1,000 trading allowance covers many casual sellers — but not all

Selling for profit or regularly? You may need to register and file

From 2024, Vinted reports your income to HMRC — automatically

Don’t ignore your tax obligations — act early and stay stress-free

Need Help with Vinted Taxes? We’ve Got You Covered.

At Eternity Accountants, we specialise in helping online sellers, side hustlers, and small business owners just like you. Whether you need:

• Help registering with HMRC
• Filing your first tax return
• Tracking income from Vinted, Etsy, eBay, or beyond
• Or just understanding what applies to your situation…

We’ll handle the numbers, so you can focus on the sales.

📞 Book a free consultation today and get peace of mind with Vinted tax compliance.
👉 Contact Eternity Accountants now (insert actual link when publishing)