Tax expert urges Vinted sellers to do one thing to avoid nasty HMRC fine

A tax expert has warned that your Vinted side hustle could be putting you at risk of being caught out by the HMRC.

The online marketplace is undoubtedly having a moment. The app currently has over 16 million UK users and has become a go-to for offloading an old wardrobe or nabbing some vintage bargains. It’s even making a name as a somewhat lucrative enterprise, with some sellers claiming to have made thousands from selling used items on the platform.

It sounds like a relatively easy way to make some extra pocket money. But, unfortunately, tax professionals are cautioning that this may not be the miracle pay day it appears.

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HMRC now has visibility into online selling activity, which means that non-compliant activity could lead to in-depth investigations or large fines – which could even end up being larger than your earnings.

Since the beginning of 2025, the HMRC started receiving data on sales and users for anyone who has more than 30 transactions per year, regardless of profit. Reporting thresholds were particularly tightened on Vinted, meaning that users who either do 30 sales per year or exceed £1,700 of gross sales over 365 days must now have their data reported with HMRC.

Lee Murphy, Managing Director of The Accountancy Partnership, a leading accountancy firm that specialises in tax returns for Amazon and eBay, explains how HMRC could detect and act on your side hustle.

He says: “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."

It’s not something you can just brush off either. Lee cautions: “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.”

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But there’s no need to panic just yet. Lee explains that certain kinds of activity are more likely to raise red flags than others. He says: “If you are selling unwanted personal items and not making repeat trades or dropshipping, then you’re unlikely to face HMRC scrutiny.”

He continues: “If you do, however, earn over £1,000 from your side hustle each year, or you exceed 30 sales within one year, then you must let HMRC know about this to avoid getting any fines or being under any sort of criminal investigation.”

Lee adds that if you’re unsure how many items you’ve sold, or how much money you’ve made so far, then it’s best to take the time to go back and find your detailed sale records. He says: “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.”

If you want to find out how much tax you should be paying for selling items online, you can also check using this tax calculator here: https://www.theaccountancy.co.uk/calculators/limited-company-vs-sole-trader-calculator

A spokesperson for HMRC told The Mirror: “As has always been the case, if you’re not trading and just occasionally sell unwanted items online – there is no tax due. Some people who are trading via websites, or selling services online, may need to be paying tax and register for Self Assessment.

“Our Help for Hustles campaign helps those with income from side hustles understand their tax obligations and avoid any surprises.”

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