National Insurance alerts have sparked panic among Brits who sell their clothes online. Vinted users who were trying to make extra cash by selling their second-hand items feared they had inadvertently impacted their taxable income.
Users who had sold more than 30 items or made £1,700 in a year reported receiving notifications that asked for their NI number as “required by UK law”. Sellers have taken to TikTok and Instagram to share screenshots of the notification and ask whether they will be hit by a huge tax bill.
One user posted on Reddit: “Vinted is asking for my National Insurance number, does this mean I have to pay taxes? I barely make money on Vinted – what happens if I ignore this?”
HMRC stated that while regulations are aimed at people running a resale business, rather than people decluttering their wardrobe, some may face a “very large tax bill”.
Platforms that allow people to sell items and services, such as eBay and Airbnb, came under new reporting regulations as of January 2024. The Government stated it would help “bear down on tax evasion”.
According to Vinted, information must be shared with HMRC by the end of the calendar year by sellers who hit the 30 item or £1,700 threshold.
Chartered accountant Abigail Foster reassured sellers that while the message may cause panic, it is unlikely to affect most people.
“If you’re simply selling your own second-hand clothes or household items, you won’t owe any tax, even when Vinted shares that data with HMRC,” she told the BBC.
The accountant explained that HMRC would easily be able to identify someone who was using the site to trade professionally by searching for multiple listings of the same product, or items bought and quickly resold for higher prices.
An HMRC spokesperson said: “People remain responsible for their own tax affairs, and for assessing whether they need to complete a tax return to report trading income.
“As your side hustle grows, any unpaid tax might come under the spotlight.
“This could lead to an unexpected and possibly very large tax bill if you haven’t told us about the extra money you’ve been earning. That’s why it’s really important to stay on top of your tax affairs.”
“This rule is aimed at people who are effectively running a resale business, not those decluttering their wardrobes.”