Do you pay tax on second-hand goods?

Depending on where you're selling your items online, second-hand clothing businesses may be required to charge and remit VAT or sales tax on the sale of goods. In some cases, the sale of second-hand goods may be subject to reduced rates or exemptions.

Do I need to pay tax on selling second-hand items?

If you receive items from family members, sell them, and then keep the proceeds for yourself in excess of £1,000, you will be liable to pay tax. The critical point here is whether HMRC sees you as an individual, operating as a business, or simply clearing personal items.

Do you pay duty on second-hand goods?

You may still have to pay duties and taxes on second-hand goods – however, if the goods are classified as antiques or original pieces of art, you could benefit from reduced VAT depending on the national regulations and if your goods meet the correct criteria.

How much can I sell on Vinted without paying tax?

If the money you make on Vinted over a year is less than what you paid for the items, you pay no tax. The only time that an individual item might be taxable is when you sell it for more than £6,000 and there is a profit from the sale (i.e. it sells for a higher price than you paid for it).

Does Gumtree report to HMRC?

From 1 January 2024, digital platforms such as Vinted, Gumtree, eBay, and Airbnb will be required to report seller data to HMRC. This will include the names of individual sellers and volume of their sales and is part of a clampdown by HMRC to 'bear down on tax evasion'.

What about a tax credit for buying second-hand goods?

How much can I sell on eBay without paying tax in the UK?

The £1,000 Trading Allowance

It also covers earnings from online platforms like eBay, Depop, or Facebook Marketplace. This allowance applies to income from casual sales, not regular or planned business activities. If you make more than £1,000, you must report your income to HMRC and may need to pay tax.

How does HMRC detect undeclared income?

Financial records (bank account statements, debit/credit card accounts, credit reference agencies, insurance companies, crypto asset platforms). Online sales records (eBay, Amazon, Zoopla, Rightmove, etc). Social media. Peripheral information like Google Earth, sales for flights, etc.

Do you have to tell HMRC if you sell on Vinted?

You need to tell HMRC if: Your Vinted income (combined with other casual sales) exceeds £1,000 in a tax year. You are buying and selling items with the intention of making a profit. You're running a more substantial operation that could be considered a business.

How to declare side hustle income?

Paying tax on your side hustle income is different from the way you normally pay tax on your full-time salary. This time, you'll need to submit a Self Assessment tax return. If you're submitting your first tax return, you'll need to register for Self Assessment (self-employed).

Do I need to declare cash gifts to HMRC UK?

If you receive a cash gift, you don't usually need to declare it to HMRC. But, if you make a profit on any gifts you receive, you will need to report this to HMRC.

What is considered second-hand goods?

Used goods, also known as secondhand goods, are any item of personal property that have been previously owned by someone else and are offered for sale not as new, including metals in any form except coins that are legal tender.

Do I have to pay VAT on second-hand items?

Buying second-hand goods

However, when you buy second-hand goods from a trader using one of the second-hand margin schemes you will be charged VAT on the profit margin, but as a condition of the scheme you will not be issued with a VAT invoice and you will not be able to recover the VAT you are charged.

Do you need a licence to sell second-hand goods?

You'll usually need to register if you sell or trade the following goods: second hand motor vehicles, vehicle parts or accessories. jewellery. furniture and domestic appliances.

What happens if you sell more than 30 items on Vinted?

On Vinted, particularly, reporting thresholds were tightened, and users who either do 30 sales per year or exceed £1,700 of gross sales over 365 days must now have their data reported with HMRC.

Does Facebook Marketplace report to HMRC?

The January 31st Online Sales Reporting Change. As of January 31st, 2024, online marketplaces such as eBay, Vinted, Etsy, and Facebook Marketplace are now required to report seller information to HM Revenue and Customs (HMRC).

Do I have to give Vinted my national insurance number?

To submit the form, we only require your NI number or confirmation that you don't have one, which is only shared with HMRC. Learn more from GOV.UK about what details you need to give as a seller.

Is HMRC warning about side hustle tax?

HMRC is warning those earning extra income through a side hustle to check if they need to register for self assessment and file a tax return. Side hustles can be any additional income stream, from online selling to content creation, from dog walking to property rental.

Do I have to pay tax on selling personal items?

Do I Have to Pay Tax on Selling Personal Items for Less Than I Paid? If you are selling personal belongings, such as second-hand clothes, furniture, or electronics, for less than you originally paid, you usually don't need to pay tax. These are considered personal possessions, and there's no profit to tax.

How much can I earn without declaring to HMRC?

Currently, you need to file a self-assessment tax return if you earn over £1,000 in total from any side hustles such as trading goods, dog walking or gardening on the side, driving a taxi, or creating online content. But, in future, you'll be able to earn more before having to file a tax return.

How much can I sell on Vinted without being taxed?

The tax-free trading allowance is currently set at £1,000 each tax year. This means that you won't have to pay tax on any self-employment income under this amount.

How much can I sell on eBay without paying tax?

There's no new 'side hustle tax'!

In general, selling personal items is not taxed if they're below £6,000 and you're not selling as part of a business.

Can you earn a living on Vinted?

If you've got an eye for style and an entrepreneurial spirit, selling on Vinted could be a good way to earn additional income. While there are other apps for selling clothes online, Vinted's lack of seller fees, features for professional sellers, and large user base make it a popular choice for savvy sellers.

Can HMRC see all your bank accounts?

HMRC can access personal or business bank accounts, but only with reasonable justification. They may use Financial Institution Notices (FINs) or powers under the Direct Recovery of Debts to obtain bank data or recover tax owed, often without needing court or taxpayer approval.

What happens if I forgot to declare income?

You must report this income to HMRC, usually by 5 October following the end of the tax year in which you received it. If you forget or fail to do so, you are committing at best a civil offence and at worst a criminal offence, leaving you open to financial penalties or even imprisonment.

How do you know if HMRC is investigating you?

HMRC has the right to check your affairs at any point to make sure you're paying the right amount of tax. If your business is selected, you'll receive an official HMRC investigation letter or phone call in which they'll tell you what they want to look at. This might include things like: the tax that you pay.