Urgent Warning for Vinted Users: What You Must Do Before the October Tax Deadline!

Deadline Alert: Vinted Users Must Prepare for Tax Submission!

With the October tax deadline looming, Vinted users across the UK need to be aware of critical tax obligations this year. If you’ve earned from your sales on this popular platform, understanding your responsibilities is key to avoiding any last-minute surprises.

What Vinted Users Need to Know About Tax Deadlines

Since January 1st, 2023, Vinted sellers must submit a tax report if their sales are profitable. If you’ve made a profit through Vinted, it’s essential to complete the necessary paperwork before the looming deadlines. To be compliant, if you have either sold 30 items or earned over £1,700 this year, you must fill out an HMRC seller report form.

This move is part of HMRC’s initiative for more robust oversight of side hustles and online sales. But don’t fret! If your total sales don’t surpass the amount you spent on your items, you won’t owe any taxes. However, those selling for profit should prepare to take action.

Do I Need to Pay Tax on My Vinted Sales?

A significant number of Vinted users are often left wondering, "Do I have to pay tax on my second-hand sales?" The answer largely depends on how much you earn from your sales. Over 18 million users in the UK use Vinted to trade items, and if your sales exceed £1,000, you’re obligated to declare your income, and potentially complete a self-assessment tax return. If you sell something for less than you paid, like selling a top for £20 after paying £30, you’re in the clear!

For example, if you sell an item for £6,000 or more, you will need to pay tax on that profit! Vinted offers a capital gains tax-free allowance of £3,000 for yearly profits, helping casual sellers to avoid any tax burdens if they stay under this threshold.

Understanding How Vinted Works: What Sellers Must Know

So, how does Vinted function for those looking to sell? Essentially, Vinted is a user-friendly app where you can buy and sell second-hand clothing and accessories with minimal hassle. Sellers can list items at no cost, and the platform generates revenue primarily from buyer protection fees, varying from 3% to 8% of the sale price.

When you earn money through Vinted sales, it goes directly into your Vinted Wallet, which can be transferred to your bank account. What’s fantastic about Vinted is that there are no selling fees — amazing, right?

Filing the HMRC Seller Form: What You Need to Do

If you qualify by selling 30 items or earning £1,700 this year, Vinted will reach out to you through the app, prompting you to submit the seller report form. If you haven’t sold that much or earned that much in 2023, you’re in the clear and won’t need to submit anything.

For those who do receive the notification, you’ll simply need to verify your information within a pre-filled form and add your National Insurance Number. There’s no need for complicated calculations, making the process easier for new sellers.

How to Know if You Must Submit a Tax Return?

Navigating the complexities of self-assessment can be daunting. Self-assessment is how HMRC gathers income tax from individuals earning beyond set thresholds. You usually don’t have to worry about it if tax is automatically deducted from your regular income. But, if you’re self-employed or earning untaxed income over £1,000, you must take the correct steps to report that income.

Here are some scenarios indicating you’ll need a tax return:

• Earning more than £1,000 from self-employment
• Receiving more than £2,500 in unreported income like tips
• Limited company directors or shareholders
• Individuals claiming expenses exceeding £2,500

Before filing your tax return, ensure you have your unique taxpayer reference (UTR) number, which you receive upon registering for self-assessment. It’s essential for proper reporting and can be retrieved online or via post.

Don’t Miss the Deadlines!

The deadline for new sellers to check if they need to submit a self-assessment is October 5. If it turns out you do need to file a return:

• Submit by January 31 if filing online.
• Or, if filing by post, the deadline is October 31.

Don’t let the deadlines intimidate you! With proper preparation and organization, managing your Vinted tax obligations can be a breeze. Stay informed, keep your sales records, and align with HMRC guidelines to enjoy your side hustle to the fullest. Happy selling!