Thousands of Vinted users issued warning ahead of October tax deadline – what you can do now

THOUSANDS of Vinted users have been issued a warning on tax rules ahead of an important deadline in days.

Those who make money selling items online may need to report their earnings to HMRC if they make a profit.

Firms like Vinted now have to pass on customer data to HMRC if a user sells 30 or more items a year, or earns over £1,700.

The new rules were brought in from the start of this year. Before that, some people making extra income still had to report their profits to HMRC.

But now Vinted and other selling platforms and marketplaces like Depop and eBay share data directly with the taxman.

It is part of a wider tax crackdown to help ensure that those who boost their income via side hustles pay up what they owe.

It is worth noting that this isn't a new tax.

Anyone online might have to pay tax if they make £1,000 or more a year from selling items online and has done before now - but the new rules give the taxman greater visibility over what you earn.

Now Vinted is messaging users directly to remind them about the end of year tax rules.

The shopping app has said it will message sellers to let them know if they need to file an HMRC seller form.

Not every customer will contacted, only those who have made over 30 sales or £1,700 over the year.

The HMRC seller form doesn't necessarily mean that you owe tax.

The taxman will use it to verify against its own records to make sure sellers and renters are correctly reporting their income on their tax returns.

It comes ahead of a major deadline in the tax year on October 5.

This is when you need to register to file a Self Assessment tax return if you haven't done so before.

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 separately.

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.

But in some cases, you need to report income to HMRC yourself, via a self assessment tax return, and then pay a tax bill.

Miruna Constantin, tax manager at accountancy group RSM, previously warned sellers: "It’s never been easier to sell on that ugly festive jumper or garish socks with online platforms like Vinted.