London, December 08, 2025
HM Revenue & Customs (HMRC) will begin reporting online sellers on platforms like Vinted from January 2025 if they have made 30 or more sales or earned over £1,700 annually, aiming to enforce tax compliance on second-hand goods trading across the UK.
New Reporting Thresholds Introduced
Starting January 2025, HMRC mandates platforms including Vinted to provide data on sellers who exceed a threshold of either 30 sales or £1,700 in earnings within a calendar year. This move targets increased transparency and compliance in the growing peer-to-peer resale market. Sellers receiving communication from HMRC are being alerted to confirm their tax status and potential liabilities.
Tax Liability Depends on Profit
Crucially, HMRC’s requirement to report does not automatically equate to a tax bill. Tax obligations hinge on whether sellers are trading for profit. Individuals selling personal used items at a loss or for less than the original purchase price generally do not owe tax. However, those engaging in regular buying and reselling for gain are classified as business traders and must declare income accordingly.
Contents and Consequences of HMRC Letters
Recipients of HMRC letters will find detailed information stating the sales activity identified and a request to submit accurate tax figures within 30 days. HMRC highlights the risk of penalties—ranging from 10% up to 100% of undeclared tax—should the request be ignored or inaccurately responded to. Prompt engagement significantly reduces the risk of enforcement actions.
Guidance on Responding
Sellers are advised to comply by submitting truthful records regardless of whether they anticipate owing tax. If necessary, registering for self-assessment with HMRC is recommended to formalize reporting and clarify trading status. It is essential for individuals to distinguish between casual sales and taxable business activities to avoid legal complications.
Vinted’s Role and Platform Reporting
While Vinted is required to share sales data with HMRC under these new rules, it does not deduct or remit tax on behalf of sellers. The responsibility for declaring income and paying any applicable tax remains with the individual seller. This underscores the importance of awareness and compliance by users of peer-to-peer marketplaces.
These measures reflect HMRC’s broader effort to monitor the expanding online resale economy and ensure fair taxation. Business leaders, policymakers, and consumers alike should note these developments as part of the UK’s evolving digital commerce landscape, recognizing that transparency and timely cooperation with HMRC are vital to avoid penalties.