Vinted has gained popularity as a place to make extra money by selling unwanted clothes after a declutter. It now attracts more than just the occasional vendor and is home to many businesses. So, how does this affect your tax bill?
Check out: Do Christmas presents require tax payment?
Will I have to pay taxes if I sell through Vinted?
You can earn up to £1,000 in miscellaneous or property income in a tax year (6th April – 5th April) without registering for tax or filing a return with HMRC. You must report it to HMRC if you earn more than the trade allowance.
If you make more than the threshold, your earnings will determine the amount and type of tax you must pay; however, remember that you only receive the trading allowance once each tax year, not for each platform you sell on.
If you already have a registered business, you only need to report your Vinted earnings on your tax return.
Will Vinted notify HMRC about my sales?
The digital platform reporting regulations require online marketplaces like Vinted to collect data on how much their merchants make. The information provided is irrelevant to most of us who occasionally sell clothing or coats, as tax is only required if you are trading or earning a capital gain.
The platform reporting requirements differ from the tax reporting standards.
Understanding the requirements for becoming an online trader is critical. If you match these conditions, online marketplaces will only provide your information to HMRC. You must continue to record your income and pay taxes to send sales data to the tax authority. Knowing these criteria will help you feel more transparent and secure about your tax status, providing you with the required knowledge.
When will Vinted submit my earnings to HMRC?
Vinted will only disclose the earnings of individuals who meet specific criteria to qualify as online traders. You are not necessarily required to pay taxes, but you might still need to submit a tax return, even if your sales do not reach the reporting thresholds set by HMRC. This process informs you about your tax obligations while ensuring your security. This process informs you about your tax obligations while ensuring your security.
The distinctions between these two scenarios can sometimes be confusing. Answering this question can help you determine which category applies to you: Do you intend to make a profit? This is important to what HMRC refers to as ‘the emblems of trade.’ Someone who buys goods to resell for a profit is more likely to be an internet trader, but someone selling an old pair of pants to make room for new ones is more likely to be a one-time seller.
The occasional seller:
- Makes less than 30 sales
- Receives no more than €2,000 (just over £1,700).
Should I sign up with Vinted Pro?
Vinted offers both standard profiles and ‘Vinted Pro’ for professional merchants. If you wish to sell as a business, signing up as a Pro Seller is required; however, you must first register as a business.
Setting up a Vinted Pro account gives your business a more professional appearance than a standard Vinted seller. The best part is that it is free to use and has no limits on the number of items you can list. If you run your business as a limited company, your profile will include your company name, registration number, and contact details. You can even keep part of this information private if you are a solo trader, allowing you to manage your business however you want.
Can I have both Vinted and Vinted Pro accounts?
Yes. You’ll only need a different email address and phone number for your Pro account, which you’ll probably already have if you’ve started a business!
It is critical to guarantee that anything you sell on your regular Vinted account is not for profit. Keeping your personal and professional accounts separate is important because HMRC may also know your earnings from your regular account.
What can I sell with Vinted Pro?
Similar to the ordinary account, Vinted Pro allows you to sell products like:
- Clothing for women, men, and children
- All kinds of footwear
- Homeware
- Pet care products, such as clothing and toys
- Accessories include bags and jewelry.
- Children’s toys and equipment
- Check Vinted’s Catalogue for a list of approved and prohibited products.
Vinted Pro’s Policies
There are distinctions between a basic Vinted account and a Vinted Pro account.
For example, on a regular account, purchasers can only return products if they are not as described or if the seller agrees – and they must report the problem within 48 hours of receiving the item. If you use Vinted Pro, your customers have the legal right to return items within 14 days. They do not need to provide a reason to receive a full refund.
There is a set of policies here, and you are invited to add your policies to supplement the ones published by Vinted.
