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From the beginning of this year, HMRC started receiving data on sales of Vinted, eBay, and Etsy users involved in more than 30 transactions per year, regardless of profit.
On Vinted, particularly, reporting thresholds were tightened, and users who make 30 sales per year or exceed £1,700 of gross sales over 365 days must now have their data reported with HMRC, according to The Accountancy Partnership.
Exceeding these limits could result in in-depth criminal investigations or large fines.
Simple ways to shop sustainably and save money
Managing Director of The Accountancy Partnership, a leading accountancy firm that specialises in tax returns for Amazon and eBay, Lee Murphy, explains: “HMRC uses data provided by the platform, whether this is Etsy, Vinted or even eBay, to match against each individual’s tax records.
“Those who’ve exceeded an annual trading allowance of £1,000 and also fail to declare this may receive reminder letters to ensure that they get their tax return done.
“While you may think this is just a scare tactic, ignoring these types of letters may lead to further full tax inquiries and criminal investigations.”
Which Vinted users are at risk of fines and criminal investigation?
If you are selling unwanted personal items and not making repeat trades, or dropshipping, “then you’re unlikely to face HMRC scrutiny”, Mr Murphy added.
However, if you earn over £1,000 from your side hustle each year, or you exceed 30 sales within one year, then you must let HMRC know, or risk facing fines or criminal investigation.
How to avoid scams
Mr Murphy added: “If you’re unsure how many items you’ve sold or how much money you’ve made so far, then it’s best to go back and find your detailed sale records.
“Also keep track of any expenses that’ve gone with the sales; stamps, postage materials and courier payments, as you could get some of this back when the time comes to doing your Self-Assessment tax form.”
How to sell your items faster on Vinted
Now that you know the HMRC’s rules you need to follow, Vinted has issued a few tips which will help you gain more attention:
Revamp your listing
- Update the photos and make sure the item is clearly visible
- Improve the title and description
- Set a discount for item bundles and encourage members to buy more items from you
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Build a trustworthy profile
- Verify your account
- Present yourself and your style briefly by filling in the “About you” section in your profile
Get noticed
- Bump your items and use ‘Wardrobe Spotlight’ to boost visibility
- Upload new items regularly
- Reduce the price of your items
- Make an offer to potential buyers
Vinted added: “Offering more shipping options may also attract more buyers, as they will have more delivery choices.”
