Vinted and tax: what UK sellers actually need to know
Two questions come up in every Vinted group in January. Do I owe tax on what I've sold? And will Vinted tell HMRC about me? The honest answers are shorter than the threads.
This is written for UK sellers by the person who makes RackHut, a records app. It isn't tax advice. Every rule below links to HMRC's own page, with the date that page was last updated, so you can check it yourself.
Selling your own things is not trading
If you're clearing out the wardrobe, the loft, the kids' outgrown stuff, or the things you bought and never wore, HMRC's own words are that you're "unlikely to pay tax if you sell personal items from your home". It doesn't matter how many, and it doesn't matter that some sold for more than you hoped. You bought them to use, not to sell on.
There is one exception, and it almost never touches clothes. Capital Gains Tax can apply when a single possession sells for £6,000 or more. A designer bag that goes for that much, possibly. A bundle of Zara, no.
When it becomes trading
Trading is buying things to sell them on, or making things to sell. HMRC again: "If you buy or make goods to sell at a profit, you're likely to be trading and will have to pay tax on your profits." Charity-shop finds you list the same week, wholesale lots, stock bought new with the tags on to resell, things you make yourself. That's a trade, however small.
Plenty of sellers do both. Your own old jeans in one bag, twenty pairs you bought at a car boot to flip in another. Only the second bag is trading income. This is the whole reason to keep records that say which is which, and there's more on that below.
The £1,000 trading allowance, properly
Once you're trading, the first number that matters is £1,000 of gross trading income in a tax year. Gross means the money in, before you take off what the items cost you or what you paid to post them. The tax year runs from 6 April to 5 April.
- Under £1,000 gross in the year. HMRC says you "do not need to tell HMRC" about it, unless you have to fill in a tax return for another reason anyway.
- Over £1,000 gross. You register for Self Assessment and declare it. Then you choose one of two ways to work out the taxable part. Either you take the £1,000 allowance off your gross income, or you take off your actual costs: what the items cost you, postage, packaging, the lot. You can't do both. If your real costs come to more than £1,000, claim the costs. If they don't, the allowance is simpler and needs no receipts.
An example. You sold £1,600 of stock you'd bought to resell. The items cost you £700, and postage and mailers came to £250, so your real costs are £950. Claiming the allowance leaves £600 to declare. Claiming the costs leaves £650. The allowance wins by £50. The year after, with £2,400 of stock behind £3,000 of sales, the costs win by a mile. So the allowance is an alternative to claiming expenses. It is never something you also take off your profit.
Whether any tax is then actually due depends on your other income and your Personal Allowance, which is what the Self Assessment return works out.
The 30-sales rule, and what Vinted actually reports
This is the part that causes the panic, so here it is plainly. Since January 2024, online platforms have had to report certain sellers to HMRC. Vinted reports you if, in a calendar year (January to December), you make 30 or more sales, or you're paid more than 2,000 euros, which is about £1,700. Under both lines, you aren't reported at all.
When you cross a line, Vinted asks you for some details (it may ask for your National Insurance number) and sends HMRC your totals in the January after the year ends. Vinted's own page says "you'll get a copy too, so you'll know exactly what we sent."
Being reported is not a tax bill. HMRC's page and Vinted's say the same thing: the report is information, it isn't a tax, and "selling personal items on Vinted is generally not taxed". Thirty sales of your own old clothes is thirty sales of your own old clothes. The trading question above decides whether you owe anything. The report only tells HMRC you were there.
Two calendars, note. The platform rule counts a calendar year. The trading allowance counts a tax year. They don't line up, which is one more reason to keep your own numbers.
If you're over £1,000: the dates
- Register for Self Assessment by 5 October after the end of the tax year you went over in. Went over during the year to 5 April 2026? Register by 5 October 2026.
- Send the return online, and pay what's owed, by 31 January after that. For the year to 5 April 2026, that's 31 January 2027.
- For the return you'll want, for the tax year: your gross trading income, what the items cost you, and your other expenses. It's worth having the number and value of sales Vinted reported for the calendar year beside them, so the two stories agree.
What's changing
- On 11 March 2025 the government announced that "the ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament". Tax is still owed on trading income over £1,000. The idea is that people between the two figures will "pay any tax they owe through a new simple online service" instead of filing a full return. Until HMRC publishes a start date, the rules above are the rules.
- Making Tax Digital for Income Tax began on 6 April 2026 for sole traders with qualifying income over £50,000 in the 2024 to 2025 tax year. The line drops to £30,000 from 6 April 2027 and £20,000 from 6 April 2028. It means quarterly updates sent through software, and a final declaration, in place of the single yearly return. A wardrobe clear-out won't come near it. A full-time reseller might, by 2028.
Keep records either way
Even if you'll never owe a penny, records are what let you say so. If HMRC ever asks about a reported year, "it was my own stuff" is an easy sentence with a list behind it and a hard one without. And if you are trading, knowing your number in September is the difference between January being a form and January being a fright.
What you want, per item: what it cost you, what it sold for, what it cost to send, and the date it sold. Per year: the gross, the costs, the expenses (mailers, storage, mileage if you claim it), and Vinted's own report next to your figures.
Where RackHut comes in
This is the only pitch in the guide. RackHut is a notebook for your shop, on your iPhone. Every sale carries what the buyer paid, what the item cost you and the postage, and the Money tab keeps a running line all year: your gross trading income for this tax year against the £1,000 allowance. When you're over it, the tax summary (part of Pro) gives you the HMRC year, gross income, item costs, expenses and what's left, labelled in plain words, plus a spreadsheet of every sale for an accountant. Bring your Vinted data file in and Vinted's own yearly figure sits next to yours, with anything that doesn't match listed.
It keeps records. It isn't tax advice, and it never logs into Vinted. Free for up to 25 items on the App Store.
Sources
- HMRC, Selling goods or services on a digital platform, updated 22 September 2025
- HMRC, Tax-free allowances on property and trading income, updated 8 May 2019
- HMRC, Check if you need to tell HMRC about your income from online platforms, updated 13 February 2025
- HMRC, Capital Gains Tax on personal possessions
- HMRC, Self Assessment tax returns: deadlines
- HM Treasury, Boost for side-hustlers as 300,000 people to be taken out of tax returns, 11 March 2025
- HMRC, Find out if and when you need to use Making Tax Digital for Income Tax, updated 26 March 2026
- Vinted, What is HMRC reporting?