Selling online

Hello, I'm trying to understand the new tax rules around selling online. I started selling items on Vinted in Sept 2022. These are my own personal items, clothes, bags, shoes, outfits, mostly worn, but some new/unwanted gifts purchases from years ago. I don't expect to make £1000 in the 2023-24 tax year (though I might just hit it if I get a good run of sales in this next quarter), however so far this tax year, I have sold around 60 items. I am unclear as to whether I would need to declare this on my tax return. I followed a series of questions on HMRC website regarding selling/additional income which asked if I was selling personal items (yes), not selling anything for more than a profit of £6000 (no) which came back with that I need not declare, but no mention of £1000 in sales, or more than 30 items. It would be useful if some from HMRC could answer here so I can prepare in advance of my next tax return, Thank you. BMad

Hi BMad,
This would be self employed income and if over £1000, you need to declare this in your tax return.
The sales would be the turnover for the year and then claim the trading allowance of £1000.
If you still have receipts for all the items sold, you can claim actual expenses if this is more beneficial.
Thank you. 


 

Thank you for this reply, However I have gone through the online questions again, and this is what the guidance comes up with: You do not need to tell HMRC about this income You do not need to pay tax on personal possessions you sold for less than £6,000. Check if you need to tell HMRC about income you’ve made by renting land or property If you’ve finished with this guidance, you can exit now and leave feedback (opens in new tab). Your reply above is contradictory, please advise further if the online questions outcome is incorrect.

Sorry just to add, I have not bought anything with the specific purpose of reselling to make a profit. All the items I have owned for a number of years (most items at least 3 years, some items 15 years!). Nothing is being sold for more than it was bought for. So far this tax year I have sold around 70 items, and have made just under £965 (many items for between £1 to £5). I have lots of items on my Vinted page so will likely be over £1000, but will never get to to £6000. Thank you

Hi,

If you are selling your own assets, then we are looking at capital gains, where the annual exempt allowance is £6000 for the current tax year.  If the gains from the assets that you dispose of are below this figure, then there is nothing to report to HMRC.  

If you are buying stock to sell online, then you are trading and the turover threshold is £1000.  If your turnover is over this amount, then you need to register for self assessment, as self employed.

Thank you.

Hi, I'm in the same position and I'm worried. I've been doing a clear out of my house and sold a lot on Vinted and eBay. It’s over the £1000 but I haven’t brought anything for the intention of selling. I’m just selling my old stuff from my sheds, wardrobe and loft. Do I need to do a tax return? Any advise would be great. Thank you

Hi caitlinmcdermott,
As the turnover is over £1000, yes you need to decare this on a tax return.
Thank you.

The response from HMRC Admin 21 to @caitlinmcdermott is contradictory to the response from HMRC Admin 32 to me. Neither of us have bought anything with the intention to sell. We are selling things we have owned for a while, some used, some not, but either way, selling our own assets as a clear out, and hardly likely to make any sort of profit when taking into account purchase price vs sale price, but the turnover is more than £1000, but less than £6000.

Hi BMad,

The rates you refer to are for Income Tax and Capital Gains Tax. As over £1000 it could be seen as trading income and you could claim the trading allowance if you do not hold receipts in order to claim actual expenses.

See further guidance below and the links therein.

Selling online and paying taxes - information sheet

Thank you.

Thank you for this. I have gone through the guidance and the links, and again come to the same conclusion that as I have only sold personal possessions, which were not bought with the intention of selling for a profit, and have not been sold for more than £6000, I do not need to declare this on my tax return.

Hi, am I right to assume I have nothing to report to HMRC if I am selling my own personal items on ebay and although making more than 30 transactions and over £1000 in one year, it is less that the £6000 stated? Thanks for any help you can give me.

Hi Susan Carrick,
Please refer to:
Selling online and paying taxes - information sheet.
From your details, this is a regular occurance and would therefore imply trading.
The £6000 figure you refer to is for capital gains.
Thank you. 
 

Hi BMad,
Please refer to:
https://www.gov.uk/government/publications/selling-online-and-paying-taxes/selling-online-and-paying-taxes-information-sheet.
From your details, this is a regular occurance and would therefore imply trading.
The £6000 figure you refer to is for capital gains.
Thank you. 

Thank you. From my perspective, I have done a house clearout, and whilst I may find a few more things to sell, I am very unlikely to ever make £1000 in one tax year again, as most of my personal high value items have already been sold, at much less than cost. Do I assume this does not need declaring? The big value items sold (the most being £90 for a wallet bought around 7-9 years ago) for which I don't have a receipt anymore, below that was an item for £68, but the majority have been less than £20, and those near the £20 mark were sarees and Asian outfits I had stitched to my measurements, which are between 5 and 20 years old, and again no receipts. As stated, I won't make this level of sales again, as most of any cupboards have now been cleared, and I have never bought anything with the intention to sell, as I just don't have the time or inclination!

I also have a question about selling online. It asks for my business name when filling out the form, but I don't have a business, I just sold over £1000 on selling platforms. I'm also finding it misleading that i have to register as self employed, as I don't consider this a job and if I were self employed I'd be earning less than minimum wage.

Hi,
As this is just a one off, no need to declare.
Thankyou.

Hi user457587,

The business name is normally your own name. selling online is still classed as trading when done on a regular basis.

Thank you.

Ok thank you, I will amend this before submitting. I previously had it as "N/A".

Admin, please define “regular basis”. This seems incredibly subjective and could mean 1 sale a week for a month, once a year or 10 sales every month depending on your perspective.

Hi,

It would be anything that is not a one off situation.

Thank you.