HMRC issues one-day warning to anyone who sells on Vinted or eBay – check if you need to act NOW
HMRC has issued a one-day warning to Vinted and eBay sellers to check if they need to register to make a Self Assessment tax return.
Those who need to register for the 2023-2024 tax year have just over 24 hours to do so, or they could risk being fined by HMRC.
This is because anyone selling items online might be liable to pay tax, if they earned £1,000 or more between 6 April 2023 and 5 April 2024.
The warning to register comes ahead of a major deadline in the tax year tomorrow (Saturday October 5).
This is when you need to have registered to file a Self Assessment tax return if you haven't done so before.
This is not the date you need to file your Self Assessment, just the date you need to register your intention to file.
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If you're unsure whether you need to register you can complete a simple assessment on the .
It's particularly important to register this year as since the beginning of 2024 firms like Vinted have to pass on customer data to HMRC if a user sells 30 or more items, or earns over £1,700, in a year.
While the reporting rules have changed, this is not a new tax.
Those who earn more than £1,000 outside their regular employment were already required to file a Self Assessment tax form with HMRC.
The new rules will give the taxman greater visibility over what people have earned, increasing the chance of enforcement.
The rules were introduced as part of a wider tax crackdown to help ensure that those who boost their income via side hustles pay up what they owe.
After the rules came in Vinted said it would message users who needed to register, so if you've not received a message you don't need to register.
Receiving a message from Vinted or making more than £1,000 from sales does not necessarily mean that you will owe tax.
If the money a member makes on online marketplaces over a year is less than the amount they paid for the items they are selling, then there should be no tax to pay.
But those "trading" for profit might need to pay tax.
How do I file a tax return?
TO file a self assessment tax retun, you'll need to register with HMRC first, which will then issue you with a Unique Taxpayer Reference (UTR).
You must register for self assessment by October 5 if you have to file a tax return and you have not sent one before.
You can do so by visiting www.gov.uk/register-for-self-assessment.
If you've previously registered and already have a UTR, you don't need to go through this step again.
Once you've got your UTR, you can sign in via the "Self Assessment tax return" section of HMRC's website by visiting www.gov.uk/log-in-file-self-assessment-tax-return.
You can then file your self assessment tax return online.
The deadline for sending a return online is January 31 every year.
If you need a paper copy of the main Self Assessment tax return, call HMRC on 03000 200 3610 and request an SA100 form.
The deadline for sending a return using a paper form is October 31 every year.
You need to pay the tax you owe by midnight on January 31 each year.
HMRC accepts your payment on the date you make it, not the date it reaches its account.
File late and HMRC will issue you with a fine.
The taxman will use the information gathered to verify against its own records to make sure sellers and renters are correctly reporting their income on their tax returns.
The deadline to submit the return for the 2023/24 tax year - and pay any tax you owe - is January 31, 2025 online.
But there's an earlier deadline of October 31 this year if you file via post.
It is worth bearing in mind that HMRC will fine you £100 for failing to file your return by the deadline.
Then, a £10 daily fine applies every day you don't submit your tax return.
Do I have to pay tax on my second-hand sales?
If you have made 30 sales or £1,700 this year you will be contacted by Vinted and asked to submit the seller report form on the app.
This year, the company said it will only approach new sellers who registered in 2024.
If you do not hear from Vinted then you don’t need to do anything, though you may need to file a tax return for other reasons.
Users who meet the criteria will be asked to add their National Insurance Number to a pre-filled form and check the details are correct before submitting it.
This will be done on the Vinted app.
You don't need to calculate or count anything yourself.
A Vinted spokesperson said: "Reporting members’ details to the authorities does not necessarily lead to taxation.
"Taxation is a separate matter that doesn't depend on HMRC reporting."
They added: "HMRC requires Vinted to collect information from members who meet the criteria mentioned above, regardless of whether or not their earnings are taxable."
Vinted said that it will be getting in contact with users who need to fill out these forms towards the end of the year.
What that means in practice is that money you make may be reported to the taxman if it's over the amounts above.
Whether or not you have to pay tax will depend on your wider circumstances.
The majority of people pay income tax automatically through employment via what's known as PAYE.
When do I need to file a tax return?
Self Assessment is a system HMRC uses to collect income tax.
Tax is usually deducted automatically from wages, pensions and savings, but people and businesses with other incomes must report it in a tax return.
It is not just online sellers who are required to fill out a tax return.
The rule applies to the following:
- Your income from self-employment was more than £1,000
- Earned more than £2,500 from renting out property
- You or your partner received high-income child benefits and either of you had an annual income of more than £60,000
- Received more than £2,500 in other untaxed income, for example from tips or commission
- Are limited company directors
- Are shareholders
- Are employees claiming expenses over £2,500
- Have an annual income over £100,000
Some Vinted users will have to submit a Self Assessment tax return if they earn over £1,000 in profit.
The process is separate from the HMRC reporting requirement, and Vinted users are responsible for handling this themselves.
If you are confused about whether or not you need to file a Self Assessment tax return you can use an online tool on GOV.UK.
The tool lets you submit information about your earnings and then will tell if you need to file one or not.
You must register to make a Self Assessment tax return by October 5.
You can register online via the GOV.UK website.
To register online you must log on to your business tax account on the HMRC website and select ‘Add a tax to your account to get online access to a tax, duty or scheme’.
If you do not already have sign in details, you’ll be able to create them when you sign in for the first time.
If you do not want to register online you must send a form to the following address: Self Assessment, HM Revenue and Customs,
BX9 1AN, United Kingdom.
After you submit your form you will then get a unique taxpayer reference code (UTR) and activation code from the HMRC.
It’s a 10-digit number and it might just be called a tax reference.
This tends to arrive in the post 15 days after you register for a tax return.
Upon receiving the UTR you can then file a Self Assessment tax return online via the GOV.UK website or by post.
If you file by post the deadline is October 31 2024.
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However, if you file online you have up to January 31, 2025.
Check out our step-by-step guide on filling out a tax return here.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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