A Vinted seller has launched a scathing critique of HMRC, the UK's tax authority, after receiving an unexpected tax report from the popular second-hand marketplace. The seller, known as Carlie on TikTok under the username @carliegarv, shared her frustration in a viral social media post, questioning why she was being asked to pay tax on items she had already purchased and sold at a loss.
Seller's Outrage Over Tax Demands
Carlie revealed that she was emailed an HMRC tax report by Vinted, which left her baffled and angry. In her TikTok video, she exclaimed, "Someone please tell me why I've just had an email from Vinted with an HMRC tax report? What do you mean you want me to pay tax on my own possessions that I've sold? The things that I've bought and sold, I've already paid tax on." She emphasised that she rarely makes a profit from her sales, often selling items for far less than their original purchase price.
Pointed Message to HMRC
The seller provided a specific example to illustrate her point, stating, "Do you really think a £50 Ralph Lauren shirt that I paid for and sold for £10 is a profit? So if we're doing the maths here, HMRC, I think you owe me money." Carlie concluded her rant by criticising the Labour Government, adding, "Tax on Vinted stuff we've already paid tax on a million and one times. What is the country coming to? It's gone to the dogs." This outburst highlights the confusion and anger among some users regarding new tax reporting requirements for online platforms.
Understanding Vinted's Tax Reporting Rules
According to reports, Vinted's UK website clarifies that if the money earned on the app over a year is less than the original cost of the items, no tax is typically due. Taxation generally only applies in specific circumstances, such as when an individual item is sold for more than £6,000 and yields a profit. However, platforms like Vinted are now required by law to provide sellers' information to HMRC under new regulations aimed at increasing transparency in the digital economy.
When Vinted Contacts Sellers
Vinted will automatically reach out to sellers if they meet one of the following criteria within a calendar year:
- Completed 30 or more sales
- Sold over £1,700 worth of items
It is crucial to note that meeting these thresholds and completing a seller report does not automatically mean taxes are owed. Selling personal possessions, especially at a loss, is generally not taxable. The reporting process is designed to help HMRC identify potential tax liabilities, but it does not impose new obligations on sellers who are merely decluttering or reselling used goods without profit.
Clarifying Tax Obligations for Sellers
Completing a seller report and sharing information with HMRC does not obligate individuals to pay taxes on their Vinted sales. The reporting mechanism is part of a broader effort to ensure compliance, but it does not change existing tax rules. HMRC's receipt of this data does not require sellers to take any new action regarding their taxation obligations, provided they are not engaging in profitable trading activities. This distinction is vital for users to understand to avoid unnecessary anxiety over their second-hand sales.
