HMRC sending tax reminders to Vinted and eBay sellers

HMRC is contacting people who earn large amounts selling through online marketplaces to let them know they could owe tax.

The popularity of platforms such as Vinted and eBay has soared in recent years, with many people clearing out their cupboards and selling their unwanted items.

For most of us, that means selling an old t-shirt, jacket or pair of jeans for just a couple of pounds.

But if you’re earning large amounts, or specifically buying or making items to sell on for a profit, you need to report your earnings.

What are the rules?

Under new rules introduced in January 2025, online marketplaces must share selling information with HMRC.

They won’t be asked to share data about sellers who make fewer than 30 transactions or £1,735 a year.

If you're trading, rather than just decluttering, you should be declaring anything you make over £1,000.

Reply in 30 days if you get a letter

HMRC is currently sending out letters to people it believes owes tax from selling items online.

The letter says: “We have information that shows you’ve earned income from online marketplace sales up to the tax year ending 5 April 2023. You need to tell us about this income. This is because you may owe tax.”

If you get one of these letters, you must contact HMRC and declare your income within 30 days, even if you don’t think you’re liable to pay tax.

Should I worry if I’m only decluttering?

Many of us have embraced platforms like Vinted because we can make a little bit of money when we’re getting rid of unwanted items.

And it’s a cheap and environmentally friendly way to refresh our wardrobes.

So if you’re just selling personal items to declutter, you don’t need to pay tax on the money you make.

It’s only if you're specifically buying or making items to sell on that you need to report your earnings.

But even if you are earning less than £1,000 a year on online marketplaces, it’s still worth keeping records of what you sell, just in case you’re asked to give this information to HMRC.

And if you’re trading and earning above the £1,000 threshold and aren't registered for self-assessment, just contact HMRC and ask them what you need to do.

HMRC has launched its Tax Help for Hustles campaign with everything you need to know about buying and selling online.