Do I pay tax on selling my old clothes on Vinted?

Usually not. Selling your own unwanted things isn’t trading, so there’s normally no income tax, even if a platform reports your sales to HMRC.

What is the 30 sales rule?

Since January 2024, platforms like Vinted, eBay and Depop report sellers to HMRC who make 30 or more sales, or about £1,700 or more, in a calendar year. It’s a reporting rule, not a tax: it doesn’t change whether you owe anything.

When does reselling become a business?

When you buy things in order to sell them at a profit, HMRC is likely to see it as trading. If your trading income is over £1,000 in a tax year, you’ll need to register for Self Assessment.

Is the £1,000 trading allowance profit or sales?

Sales. The allowance is measured against your gross trading income, what buyers paid you, before taking off what you spent on stock, fees or postage.

Guide for UK resellers

Do you pay tax selling on Vinted?

Probably not if you’re clearing out your wardrobe. Possibly if you buy things to sell on. Here’s where the line sits, what the HMRC reporting rules mean, and what to keep a record of.

Selling your own things

Selling clothes, shoes and other belongings you bought for yourself and no longer want isn’t trading. You normally don’t pay income tax on it, however many sales you make. You’re usually selling for less than you paid, so there’s no profit to tax anyway.

Buying to resell

It’s different when you buy things in order to sell them for more: charity shop finds, car boot hauls, bundles, or stock from other listings. HMRC is likely to treat that as trading, even if it’s a side hustle. The things HMRC looks at include whether you bought with the plan of selling, how often you sell, whether you repair or improve items first, and whether you’re aiming to make a profit.

The £1,000 trading allowance

If your trading income in a tax year (6 April to 5 April) is £1,000 or less, you don’t need to tell HMRC or pay tax on it. The allowance is measured against your turnover, what buyers paid you, not your profit. Sell £1,400 of clothes that cost you £600 and you’re over it, even though you made £800.

Over £1,000, you register for Self Assessment and report it. You can then take off either the £1,000 allowance or your actual costs (stock, seller fees, postage, packaging), whichever is better for you, but not both. Registration is due by 5 October after the end of the tax year you started trading in.

The 30 sales rule

Since January 2024, platforms including Vinted, eBay and Depop collect details from sellers and report those who make 30 or more sales, or earn about £1,700 or more, in a calendar year to HMRC. This is a reporting rule, not a new tax. Being reported doesn’t mean you owe anything, and staying under it doesn’t mean you don’t.

What to keep a record of

What you paid for each item and when
What it sold for, where and when
Seller fees, postage you paid, and other costs like packaging or repairs

Those give you your turnover for the trading allowance, and your profit if you report your actual costs. Thread Inventory keeps exactly these and gives you tax-year totals, from 6 April to 5 April.

This is general information, not tax advice. Rules and thresholds change, so check GOV.UK or speak to an accountant about your own situation.