Vinted has grown in popularity as a place to make a bit of cash selling unwanted clothes following a declutter, but it now attracts more than just the occasional seller, and is home to many businesses. So what does this mean for your tax bill?

Will I need to pay tax if I sell on Vinted?

You can earn up to £1,000 of miscellaneous or property income in a tax year (6th April – 5th April) without needing to register for tax or submit a return to HMRC. Known as the trading allowance, you’ll need to tell HMRC if you earn even just a penny over.

If you go over the threshold then the amount and type of tax you must pay depends on how much you earn, but just be aware that you only get the trading allowance once in a tax year – not a separate allowance for each platform you sell on!

If you’re a registered business already, you’ll just need to include your Vinted earnings on your tax return.

Will Vinted tell HMRC about my sales?

The digital platform reporting rules mean online marketplaces such as Vinted are responsible for collecting data about how much their sellers earn. For most of us that sell the occasional dress or coat this doesn’t matter, because to pay tax you’d need to be trading or making a capital gain.

 
This is a really important point to take note of. Online marketplaces will only pass your details on to HMRC if you meet the threshold for being an ‘online trader’. This doesn’t affect whether or not you need to report your income and pay tax – it just means your sales figures have been passed on to the tax authority.

When will Vinted report my earnings to HMRC?

Vinted will only report the earnings of those who hit a specific criterion to be classed as online traders. This doesn’t necessarily mean you need to pay tax. Likewise, you might need to submit a tax return even if you don’t meet the criteria for the platform to tell HMRC about your sales!

We understand the lines between the two can be blurred. A way to understand which one you are is by answering this question. Are you intending to make a profit? This is at the crux of what HMRC refer to as ‘the badges of trade’. Someone who purchases clothes to resell and make a profit is more likely to be an online trader, whereas someone selling an old pair of jeans to make space for new ones is more likely to be an occasional seller.

An occasional seller:

• Makes fewer than 30 sales
• Receives no more than €2,000 (which is a little over £1,700)

Should I register with Vinted Pro?

Vinted offer both regular profiles or ‘Vinted Pro’ for professional sellers. If you intend to make sales as a business then signing up as a Pro Seller is mandatory, but you’ll need to make sure you register as a business first.

Setting up a Vinted Pro account does give your business a more professional look than a regular Vinted seller, but it’s still free to use with no cap on how many items you can list. If you run your business as a limited company then your profile will display your company name, registration number, and contact information. If you’re a sole trader you can keep some of this information private.

Can I have both a Vinted account and a Vinted Pro account?

Yes. You’ll just need a different email address and phone number for your Pro account – which you’ll likely have anyway if you’ve set up a business!

It’s important to ensure everything you sell on your standard Vinted account isn’t intended for profit. Keeping your personal and professional accounts completely separate is important, as HMRC may be informed of your earnings on your standard account too.

What can I sell on Vinted Pro?

Similar to the standard account, on Vinted Pro you can sell things such as:

• Women’s, men’s and children’s clothing
• All types of footwear
• Homeware
• Pet care items like clothing and toys
• Accessories such as bags and jewellery
• Children’s items like toys and equipment

Check out Vinted’s Catalogue for their list of allowed and prohibited items.

Vinted Pro’s policies

There are differences between a standard Vinted account, and a Vinted Pro account.

For instance, on a standard account buyers can only return items if they’re not as described, or if the seller agrees to it – and they have 48 hours from receiving the item to report the problem. Whereas if you use Vinted Pro your buyers have a legal right to return an item within 14 calendar days. They don’t need to give a reason in order to receive a full refund.

There are a list of policies here, and you are welcome to add your own additional policies to compliment the ones created by Vinted.

 
Unsure how to declare your Vinted earnings? Learn more about our online accounting services for businesses. Call 020 3355 4047 to chat to the team, and get an instant online quote.