Selling on Vinted? Here’s What to Know About Taxes

Today, online shopping has grown exponentially in the UK. With a tremendous rise, people are now selling second-hand clothes online. Then, there comes a popular platform, Vinted, where people earn some cash by selling unwanted clothes. In 2008, two friends set up Vinted; one wanted to declutter his wardrobe. Now, this platform owns millions of users across different countries. This app comes with one benefit: like eBay, there’s no fee involved in this as a seller.

However, every seller thinks twice about selling on Vinted regarding taxes. Do you also want to know the rules and regulations regarding taxes on Vinted? Here, we have compiled all your queries with answers so you can decide accordingly.

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• What Tax Do I Need to Pay While Selling on Vinted?
• Will Vinted Report My Earning to HMRC?
• When Do Vinted Report Earnings to HMRC?
• Should I Start Selling on Vinted Pro?
• Can I Make both Vinted and Vinted Pro Accounts?
• Vinted Pro’s Policies

What Tax Do I Need to Pay While Selling on Vinted?

In the UK, selling on Vinted allows you to earn up to £1000 of property income in a tax year (6th to 5th April) without filing a return to HMRC. This is called the trading allowance, and you must tell HMRC if you have even earned a penny over this.

If you earn more than this threshold, the amount and type of tax you pay will depend on your income. However, the single allowance rule applies to your yearly earnings, not the platform’s. However, if you use multiple platforms to sell, make earnings below £1000 to avoid hefty tax.

Will Vinted Report My Earning to HMRC?

Vinted is a digital platform that collects data about every seller’s earnings. However, you shouldn’t worry about taxes if you sell a coat or shoes. The taxes apply only to those who trade or make a capital gain.

Vinted reporting your earnings to HMRC not always means you will be taxed. Their policy is to pass out the seller’s data with sale figures to the tax authority.

When Do Vinted Report Earnings to HMRC?

Vinted does not report the earnings of every seller. Instead, they choose the trader who earns a hefty amount. This means paying tax only sometimes. However, you must file your tax return with HMRC even if the platform has conveyed your sales and earning information to HMRC.

So, you are still confused about paying taxes? All of it depends upon which type of seller you are. A seller who wants to trade on this platform by selling clothes and making a profit will most likely pay tax. Or a seller who wants to clear up the wardrobe by selling a pair of jeans or old shoes. If you are decluttering your closet, you are an occasional seller with less than 30 sales, receiving almost £1700.

Should I Start Selling on Vinted Pro?

Various Vinted professional sellers generate massive profits. If you are also considering registering as a pro seller, you should register as a business first. Setting up your account as a business seller will give you more profit than the regular account. However, account-making is free, which means there is no cap on how many items you have on the list.

If you choose to mention your business as a limited company, your profile will show your contact information and business name. However, selling as a sole trader lets you keep some of your business information private.

Can I Make both Vinted and Vinted Pro Accounts?

Yes, you can make both accounts. You’ll require an email address and a phone number for your pro account. However, make sure you sometimes have different intentions of making a profit by selling on Vinted. It is essential to keep your professional and personal accounts completely separate. HMRC may inform you of your earnings through your standard account.

What Items Can I Sell On Vinted Pro?

Just like the standard account on Vinted Pro, you can sell things like
– Clothing (Women, men and children)
– Footwear
– Homeware
– Pet items (Clothing and Toys).
– Accessories like (Bags and Toys).
– Children’s Items like toys and equipment.

Vinted Pro’s Policies

Selling on Vinted is best when you want to earn some profit by selling your second-hand clothing. There are differences between a standard Vinted account and a Vinted pro account. With a standard account, buyers can only return items if they are not adequately defined or if it is in the seller’s policy. However, the Vinted Pro option is perfect from the buyers’ point of view, as the customer can return the item within 14 calendar days. No matter the reason, they have a legal right to return the item and get a refund.

There is a list of policies for Vinted users, and you can add your policies and rules for selling as a seller.