This feels more like a thorough read of vinted t&cs would answer it.
No commercial sellers is a vinted thing, I wouldn't think it's anything to do with hmrc. Hmrc don't care about where the revenue comes from, you just have to report it properly in tax assessments etc.
I would imagine the biggest risk for staying on vinted is they can shut your account down whenever they decide to run an audit and decide that you're using it against their terms of use.
Vinted doesn't allow commercial sellers. That means that, if you do start an actual fashion business, you're at risk of being banned at any time, potentially with your funds being withheld, and with no way to shift your stock. It might not happen instantly, but if you have gone as far as buying stock and having your own website, how can you argue that you're *not* a commercial seller?
If you are genuinely not a commercial seller, HMRC will not care. However, if you are getting significant payments from Vinted, you may look like one - the question is whether you fulfil the badges of trade such as buying clothes for resale.
If you're e.g., buying clothes for one-off special nights and they're all in your size, etc., or if you've owned them for a very long time, then there is no trade and therefore no income to be taxed even if your gross revenue is over £1,000. If your revenue from trade is over £1k you still need to register for Self Assessment, even if it results in a loss (or profit less than £1,000).
It’s not new tax regulations, online marketplaces like vinted have always been forced to share sales figures with hmrc however now it’s more commonplace. Equally the rules regarding registration for self assessment have remained the same, just more publicity over it now.
You don’t need a limited company to set up a fashion business, you might already be considered trading in HMRCs view however it’s unlikely from what you have said
What HMRC call trading and what vinted call “commercial sellers” are different concepts. You should read up and understand what each of these mean then apply them to your circumstances.
Ultimately I take your questions to be “should I turn this hobby into something more serious now I am treading into the territory where there could be tax consequences & I might have access to the platform I use to sell items restricted”
My take would be for you to actually read up on these areas first then make your decision once you have all the necessary information.
Are they your old clothes? As in, you’ve bought them, paid VAT, and are selling them as a private individual?
If so, the £1000 limit doesn’t apply, you’re not a sole trader.
If you’re buying things to sell, that’s different. It sounds like Vinted doesn’t allow businesses do you need another platform.
Depends [where you shop](https://www.net-a-porter.com/en-gb/shop/designer/gucci). Brands like Prada, Guici are going to have resale value on these platforms etc so it wouldn't surprise me if 1/100,000 redditors had this question.
Firstly decide whether you are buying things to resell or buy things to wear and then later reselling. If it is the later you are not running a business and the £1k limit does not apply.
If your turnover is £7k please do not go ltd. Your account recommends it as it is complicated so they get paid more. There may be some small tax benefits but for a business your size it will be completely outweighed by the additional accounting costs.
The next steps would be actually selling vintage bags. So I have started to buy in order to resell in the future. The initial goal would be 2-4K per month in profit. I think I need a limited company to build a brand. I’ve seen commercial sellers on vinted but they don’t do that officially I guess.
You 100% don't need an LTD to start a brand. There are thousands of brands doing millions of revenue that are sole traders or partnerships. I wouldn't consider an LTD till you're at £20-40k gross **at least.**
I'm probably not answering the question you asked, but could you consider e-Bay or Depop instead? I'm thinking of leaving Vinted because I think it's a buyer's market rather than a seller's one. People expect things at rock bottom prices and I've had a couple of bad buyers recenetly
You don’t have to register as a limited company, would you not be better registering as a sole trader, if you’re just a single person selling used clothes? Or will you no longer be selling used clothes on Vinted?
Yeah I’m a tax advisor and your advisor is absolutely having you on. Unless you’re making absolute mega bucks in your employment there is most likely no reason to register a company for £1,000 a year of sales. Sounds like business is a bit slow for them and they want that sweet money off ya
I’m an additional rate tax payer through employment in fact, and would like to build a vintage bag business on the side. He told me if I want to build a brand, a limited is better for me.
I’d find a new accountant, there are costs and implications to setting up an Ltd (like more work for the Accountant £££) that mean it’s unlikely to be cost effective for small turnovers. Limited companies have other benefits, [see this article](https://www.money.co.uk/business/sole-trader-vs-limited-company).
To quote:
*GoSimpleTax calculates that for someone with **profits** of £15,000 a year, it is more tax efficient to be a sole trader – with an annual saving of around £150. However, once you earn **more than £20,000 per annum**, it calculates that setting up a limited company will save you money.*
Accountant here, I’ve just made a sole trader ltd. I wouldn’t go ltd until you’re earning over the £50270 tax bracket as sole trader 20% tax is pretty much same as the ltd 19% tax up until that point and it’s much easier to do a self assessment than company tax returns!
I'm a private seller and like to buy and sell instruments, play with them for a bit and then sell them and buy another. I pretty much always sell for a loss. I got a letter from HMRC asking me to clarify my status, I ticked the box saying I have declared everything, and then wrote a letter explaining that I'm just a guy who buys guitars and sells them after a bit, acquiring many losses on the way and sent it off. That was last May and I haven't heard anything since.
You do not need an LTD to run a business.
If you have untaxed income over £1000 within a tax year then you must register for self assessment with HMRC and get a UTR(Unique tax reference). You should register for self assessment as self-employed in this case.
https://www.gov.uk/self-assessment-tax-returns/sending-return
However, you only pay tax on profit, so income minuses expenses. Keep a spreadsheet with the things you bought (price at purchase) and income earned within the tax year (tax year runs from 6th April to 5th April).
You have to submit a tax return yearly till you declare in your last return you closed your business, even if lets say you made no profit or made a loss. Otherwise, you will get a penalty.
Deadline for tax return and for payment of any taxes due is 31st Jan after the end of the last tax year. So, for the current tax year 2024-25, which will end on 5th apr 2025, you must submit a tax return by 31st Jan 2026 and pay the tax (if there is any).
You can also deduct other expenses: cost of internet/phone, travel, etc., but only the percentage for business, not for personal use.
Source: am a bookkeeper
You’ll be fine if selling your own items at a loss. Vinted sent a comm out a while back clarifying that if you sell your own items it’s fine and allowed, even if it’s more than £1k made on the site in a year as you’d have purchased at a higher price, therefore no profit
But the thing is that I did sell like 5 items for profit. Some of the things were bags where I even made a few hundred profit. That could be seen as trading.
You will need to self declare. If you're selling old stuff, then you're selling at a loss, meaning you have no profit and you don't have to pay taxes. This is what you will need to declare.
Although you've sold £1000 worth of product, you do not need to declare, unless you've made a profit of £1000. So if you've sold a load of clothing for a loss, you would not class anything as an income.
The clothing you've sold as a trade; you would need to declare earnings, if you've made a profitable turnover in excess of £1000.
If your combined income from work and online sales exceeds £50k limited company would be a good option. Corporate tax is 25% on profits.
This feels more like a thorough read of vinted t&cs would answer it. No commercial sellers is a vinted thing, I wouldn't think it's anything to do with hmrc. Hmrc don't care about where the revenue comes from, you just have to report it properly in tax assessments etc. I would imagine the biggest risk for staying on vinted is they can shut your account down whenever they decide to run an audit and decide that you're using it against their terms of use.
Vinted doesn't allow commercial sellers. That means that, if you do start an actual fashion business, you're at risk of being banned at any time, potentially with your funds being withheld, and with no way to shift your stock. It might not happen instantly, but if you have gone as far as buying stock and having your own website, how can you argue that you're *not* a commercial seller? If you are genuinely not a commercial seller, HMRC will not care. However, if you are getting significant payments from Vinted, you may look like one - the question is whether you fulfil the badges of trade such as buying clothes for resale. If you're e.g., buying clothes for one-off special nights and they're all in your size, etc., or if you've owned them for a very long time, then there is no trade and therefore no income to be taxed even if your gross revenue is over £1,000. If your revenue from trade is over £1k you still need to register for Self Assessment, even if it results in a loss (or profit less than £1,000).
It’s not new tax regulations, online marketplaces like vinted have always been forced to share sales figures with hmrc however now it’s more commonplace. Equally the rules regarding registration for self assessment have remained the same, just more publicity over it now. You don’t need a limited company to set up a fashion business, you might already be considered trading in HMRCs view however it’s unlikely from what you have said What HMRC call trading and what vinted call “commercial sellers” are different concepts. You should read up and understand what each of these mean then apply them to your circumstances. Ultimately I take your questions to be “should I turn this hobby into something more serious now I am treading into the territory where there could be tax consequences & I might have access to the platform I use to sell items restricted” My take would be for you to actually read up on these areas first then make your decision once you have all the necessary information.
Are they your old clothes? As in, you’ve bought them, paid VAT, and are selling them as a private individual? If so, the £1000 limit doesn’t apply, you’re not a sole trader. If you’re buying things to sell, that’s different. It sounds like Vinted doesn’t allow businesses do you need another platform.
The £1000 limit applies if you’ve bought stock to sell at a profit. Doesn’t apply to selling old clothes
You would need a lot of old clothes to smash £1000 a year.
To be fair if you somehow have luxury items eg coats and trainers, you could get to £1000 in 10 items or less.
Doesn’t matter how much you make on clothes you’re selling at a loss
Depends [where you shop](https://www.net-a-porter.com/en-gb/shop/designer/gucci). Brands like Prada, Guici are going to have resale value on these platforms etc so it wouldn't surprise me if 1/100,000 redditors had this question.
I made £600 on Vinted in 2023 selling mainly old high street/ fast fashion clothes. Really easy to hit £1000 if you have designer brands.
Firstly decide whether you are buying things to resell or buy things to wear and then later reselling. If it is the later you are not running a business and the £1k limit does not apply. If your turnover is £7k please do not go ltd. Your account recommends it as it is complicated so they get paid more. There may be some small tax benefits but for a business your size it will be completely outweighed by the additional accounting costs.
The next steps would be actually selling vintage bags. So I have started to buy in order to resell in the future. The initial goal would be 2-4K per month in profit. I think I need a limited company to build a brand. I’ve seen commercial sellers on vinted but they don’t do that officially I guess.
Honestly do a few to see how it goes. You may find that you struggle or it booms. You don't need an LTD for a brand.
You 100% don't need an LTD to start a brand. There are thousands of brands doing millions of revenue that are sole traders or partnerships. I wouldn't consider an LTD till you're at £20-40k gross **at least.**
I'm probably not answering the question you asked, but could you consider e-Bay or Depop instead? I'm thinking of leaving Vinted because I think it's a buyer's market rather than a seller's one. People expect things at rock bottom prices and I've had a couple of bad buyers recenetly
You don’t have to register as a limited company, would you not be better registering as a sole trader, if you’re just a single person selling used clothes? Or will you no longer be selling used clothes on Vinted?
Yeah I’m a tax advisor and your advisor is absolutely having you on. Unless you’re making absolute mega bucks in your employment there is most likely no reason to register a company for £1,000 a year of sales. Sounds like business is a bit slow for them and they want that sweet money off ya
I’m an additional rate tax payer through employment in fact, and would like to build a vintage bag business on the side. He told me if I want to build a brand, a limited is better for me.
I’d find a new accountant, there are costs and implications to setting up an Ltd (like more work for the Accountant £££) that mean it’s unlikely to be cost effective for small turnovers. Limited companies have other benefits, [see this article](https://www.money.co.uk/business/sole-trader-vs-limited-company). To quote: *GoSimpleTax calculates that for someone with **profits** of £15,000 a year, it is more tax efficient to be a sole trader – with an annual saving of around £150. However, once you earn **more than £20,000 per annum**, it calculates that setting up a limited company will save you money.*
Honestly, these numbers still seem low.
Ok that’s useful info. The limited might be in fact the way to go for me.
Accountant here, I’ve just made a sole trader ltd. I wouldn’t go ltd until you’re earning over the £50270 tax bracket as sole trader 20% tax is pretty much same as the ltd 19% tax up until that point and it’s much easier to do a self assessment than company tax returns!
I am additional rate tax payer and my goal for the business would be 25k in profit this year. Seems like a limited right?
I'm a private seller and like to buy and sell instruments, play with them for a bit and then sell them and buy another. I pretty much always sell for a loss. I got a letter from HMRC asking me to clarify my status, I ticked the box saying I have declared everything, and then wrote a letter explaining that I'm just a guy who buys guitars and sells them after a bit, acquiring many losses on the way and sent it off. That was last May and I haven't heard anything since.
You just complete a self assessment and pay the income tax. It’s literally 1 box.
You do not need an LTD to run a business. If you have untaxed income over £1000 within a tax year then you must register for self assessment with HMRC and get a UTR(Unique tax reference). You should register for self assessment as self-employed in this case. https://www.gov.uk/self-assessment-tax-returns/sending-return However, you only pay tax on profit, so income minuses expenses. Keep a spreadsheet with the things you bought (price at purchase) and income earned within the tax year (tax year runs from 6th April to 5th April). You have to submit a tax return yearly till you declare in your last return you closed your business, even if lets say you made no profit or made a loss. Otherwise, you will get a penalty. Deadline for tax return and for payment of any taxes due is 31st Jan after the end of the last tax year. So, for the current tax year 2024-25, which will end on 5th apr 2025, you must submit a tax return by 31st Jan 2026 and pay the tax (if there is any). You can also deduct other expenses: cost of internet/phone, travel, etc., but only the percentage for business, not for personal use. Source: am a bookkeeper
You’ll be fine if selling your own items at a loss. Vinted sent a comm out a while back clarifying that if you sell your own items it’s fine and allowed, even if it’s more than £1k made on the site in a year as you’d have purchased at a higher price, therefore no profit
But the thing is that I did sell like 5 items for profit. Some of the things were bags where I even made a few hundred profit. That could be seen as trading.
You will need to self declare. If you're selling old stuff, then you're selling at a loss, meaning you have no profit and you don't have to pay taxes. This is what you will need to declare.
Could you potentially start a ltd company and sell things at a loss? 🤣
Although you've sold £1000 worth of product, you do not need to declare, unless you've made a profit of £1000. So if you've sold a load of clothing for a loss, you would not class anything as an income. The clothing you've sold as a trade; you would need to declare earnings, if you've made a profitable turnover in excess of £1000. If your combined income from work and online sales exceeds £50k limited company would be a good option. Corporate tax is 25% on profits.
Wrong, it's £1000 in sales, not in profit.