Vinted & Hmrc

Buster2611

I couldn't find a thread for this although I'm sure there is.
I lost my mum,dad husband within a 10 month period.
I was left to sell anything that wasn't donated.
My parents were married 50 years and hoarded,as well as my mum was a crafter with lots of new items that she never got around to doing.
I also have many items of my husbands and from my house remodel.

I have already sold more than 30 items and sales more than £1000 but all from personal items from clearouts.

What's the situation with Hmrc and myself

Thanks

se2020

There is no situation. 
Presumably you have inherited all of these items rather than purchased them from the estate(s)

They are personal items and may be sold woth no tax due.

Hmrc may well launch an investigation so keep copies of the proof you have to show where all the items came from.

DullGreyGuy

Buster2611 said:

I couldn't find a thread for this although I'm sure there is.
I lost my mum,dad husband within a 10 month period.
I was left to sell anything that wasn't donated.
My parents were married 50 years and hoarded,as well as my mum was a crafter with lots of new items that she never got around to doing.
I also have many items of my husbands and from my house remodel.

I have already sold more than 30 items and sales more than £1000 but all from personal items from clearouts.

What's the situation with Hmrc and myself

Thanks

As you've breached the thresholds your data will be included in their feed to HMRC. HMRC will consider if it's likely you are running an undeclared business or just shifting stuff. They may ask questions or maybe able to work out what's happening themselves and so do nothing. 

The law in terms of what tax is payable on what hasn't changed, HMRC just has a new data feed to help catch those not declaring their businesses income apprioriately

RFW

DullGreyGuy said:

As you've breached the thresholds your data will be included in their feed to HMRC. HMRC will consider if it's likely you are running an undeclared business or just shifting stuff. They may ask questions or maybe able to work out what's happening themselves and so do nothing. 

The law in terms of what tax is payable on what hasn't changed, HMRC just has a new data feed to help catch those not declaring their businesses income apprioriately

I've not seen anyone mention that they've received any requests from HMRC for declarations as a result of receiving any information from Ebay or anyone else.

What HMRC said at the beginning of the year is that they would not be doing anything new with any information they receive. What happened previously was that HMRC opened an investigation and then approached Ebay for any sales that person may have had and Ebay would eventually hand it over. They've cut out the process of HMRC having to ask for it. There isn't anyone, as far as has been said, in any government department checking through all these Ebay files and cross checking with their tax returns. Even the dodgy sellers are probably still getting away with it.

For the OP, only if you make or buy to sell goods on do you have to worry about tax. If you're talking of any excessively high values you may run into inheritance tax, I can't remember the threshold offhand but it's quite high.

I'd suggest giving HMRC a call, tell them the situation, ask what you should do, make a note of when and who you spoke to and stick the details in a drawer. If you get any problems further down the line you can tell them what they told you.

DullGreyGuy

RFW said:

DullGreyGuy said:

As you've breached the thresholds your data will be included in their feed to HMRC. HMRC will consider if it's likely you are running an undeclared business or just shifting stuff. They may ask questions or maybe able to work out what's happening themselves and so do nothing. 

The law in terms of what tax is payable on what hasn't changed, HMRC just has a new data feed to help catch those not declaring their businesses income apprioriately

I've not seen anyone mention that they've received any requests from HMRC for declarations as a result of receiving any information from Ebay or anyone else.

It hasn't started yet, first reports to HMRC will be January 2025 @RFW

https://www.ebay.co.uk/help/account/regulatory/uk-digital-sales-reporting

Would be very suspicious if you had seen anyone saying it's been a result of something that will happen in 4 months time. 

TimeLord1

You won't need to pay tax on personal items that is solely if you're buying to sell for profit, then they want people registered as a business account. Then you have a capital gains allowance HMRC aren't worried with personal items unless you go over the threshold.

Check if you need to tell HMRC about additional income

https://www.gov.uk/check-additional-income-tax

Calculator 

soolin

To add to this thread there are a lot of Vinted sellers reporting today that they have been told they must upgrade to a pro seller account. Some people are reporting that Vinted pro seller UK has launched today- but there's nothing on my account not even a banner or an announcement. 

RFW

DullGreyGuy said:

RFW said:

DullGreyGuy said:

As you've breached the thresholds your data will be included in their feed to HMRC. HMRC will consider if it's likely you are running an undeclared business or just shifting stuff. They may ask questions or maybe able to work out what's happening themselves and so do nothing. 

The law in terms of what tax is payable on what hasn't changed, HMRC just has a new data feed to help catch those not declaring their businesses income apprioriately

I've not seen anyone mention that they've received any requests from HMRC for declarations as a result of receiving any information from Ebay or anyone else.

It hasn't started yet, first reports to HMRC will be January 2025 @RFW

https://www.ebay.co.uk/help/account/regulatory/uk-digital-sales-reporting

Would be very suspicious if you had seen anyone saying it's been a result of something that will happen in 4 months time. 

Good point. They are reporting 12 month periods and have until end of January 2025 to report the first round. I was given to understand that they were able to submit any going over thresholds as that happened. I may have misunderstood as it doesn't concern me anyway.

https://community.ebay.co.uk/t5/Announcements/Information-regarding-UK-digital-sales-reporting-to-HMRC/ba-p/7548575

TimeLord1

It's new accounts this year then everyone from 2025 if you're selling personal items nothing to fear or worry about it's personal accounts buying to sell for side hustle profit they're probably going to be chasing to open a business account.

RFW

TimeLord1 said:

It's new accounts this year then everyone from 2025 if you're selling personal items nothing to fear or worry about it's personal accounts buying to sell for side hustle profit they're probably going to be chasing to open a business account.

The official thing is that they're meant to report 12 months of transactions of anyone going over the thresholds. The 12 months are from 1/1/24 which they're meant to report by the end of Jan 2025.

On the second part, the reason for the change was to comply with international guidelines to crack down on sellers selling in multiple countries and not declaring tax where they should. They won't have the resources to go after someone who may be earning an extra £20/week and not declaring. That's not to say the latter shouldn't be declaring just that it would cost HMRC more than they'd get back to go after them.

TimeLord1

It will be the 30-item limit that flags up people, and then eBay will probably restrict or push people over to business accounts to make a few extra pounds.