TL;DR: Too long, Didn’t read
The Panic: Vinted, eBay, and Depop must now report sellers to HMRC if they sell 30+ items or earn over €2,000 (£1,700 approx) a year.
The Reality: Reporting does NOT mean you owe tax.
The “Old Clothes” Rule: If you are selling your own used possessions for less than you paid for them, you generally owe zero tax.
The Trader Rule: You only pay tax if you are “Trading” (buying things specifically to resell for profit) and earn over £1,000.
You open the Vinted app to list an old coat. Suddenly, a pop-up appears. “Action Required: Provide your National Insurance Number.”
It feels serious. It feels like an audit. Social media is full of rumours: “If you sell more than 30 items, the taxman is coming for you.” For millions of Brits trying to make a few extra pounds in January, this is terrifying.
The good news? The rumours are mostly wrong. HMRC is not interested in your old Zara dress. Here is the black-and-white truth about the “Side Hustle Tax,” who actually has to pay, and why you shouldn’t be scared of the 30-item limit.
The New Rules: What Is Happening?
Since January 2024 (with the first reports due by January 31st, 2026), digital platforms must legally share data with HMRC. This is not a “new tax.” It is just a new way for HMRC to see who is making money.
The “Trigger” Points: Your data is automatically sent to HMRC if you meet either of these conditions in a year:
You sold 30 or more items.
You received more than €2,000 (approx £1,700) in total sales.
If you hit these limits, Vinted/eBay must ask for your National Insurance number. If you don’t give it, they can freeze your account.
Scenario A: “I’m Just Selling My Old Stuff”
This is 95% of people. You are selling clothes, toys, or books you bought years ago for personal use.
Do you owe tax? NO.
Why? Because you are not making a “profit.” You bought the coat for £50 in 2022 and sold it for £20 in 2026. That is a loss, not a profit.
What if I hit the 30-item limit? Vinted will report you, but HMRC will ignore it once they see it’s just low-value household clearing.
Scenario B: The “Side Hustle” Trader
This is who HMRC is actually looking for. You are “Trading” if:
You buy items from charity shops/car boots specifically to resell at a higher price.
You make items (e.g., jewellery, prints) to sell.
You sell for a profit regularly.
The £1,000 Allowance Even if you are a trader, you have a £1,000 Trading Allowance.
If your total sales (revenue, not just profit) are under £1,000, you do not need to tell HMRC anything. It is tax-free.
If you sell over £1,000, you must register for Self-Assessment and pay tax on the profits.
Quick Check: Are You a Trader?
Selling your own unwanted iPhone for £400? -> Not a trader. No tax.
Buying 10 iPhones to fix and resell? -> Trader. Tax due if over £1,000.
Selling 50 babygros your child outgrew? -> Not a trader (even though it’s over the 30-item limit).
Frequently Asked Questions
I got the email asking for my NI number. Should I give it?
Yes. If you don’t, Vinted/eBay is legally required to freeze your funds or close your account. Giving the number does not mean you will automatically be taxed. It just allows them to file the report.
Does this apply to Facebook Marketplace?
Currently, Facebook Marketplace is harder to track because payments are often cash-in-hand. However, if you take payment via “Facebook Pay” or PayPal, the trail exists. The law applies to you regardless of the platform.
What if I sell one expensive item (e.g., a £7,000 watch)?
If you sell a personal possession for more than £6,000, you might have to pay Capital Gains Tax (not Income Tax), but only if you made a profit on it.
(Sources: GOV.UK – Online Sellers Rules, MoneyHelper – Side Hustle Tax)
We are not tax advisors. If you are unsure if you are “trading,” contact an accountant or call HMRC.