{"id":31007,"date":"2024-01-05T17:29:27","date_gmt":"2024-01-05T17:29:27","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=31007"},"modified":"2025-09-09T16:19:14","modified_gmt":"2025-09-09T15:19:14","slug":"why-is-hmrc-coming-for-second-hand-sellers","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/blog\/why-is-hmrc-coming-for-second-hand-sellers\/","title":{"rendered":"Why is HMRC coming for second-hand sellers?"},"content":{"rendered":"\n

The first week of 2024 is nearly over, which means out with the old and in with the new \u2728 and what better place for the old to become new again than online selling platforms such as Vinted<\/a>, Depop<\/a> and eBay<\/a>! <\/p>\n\n\n\n

Many of us are partial to a new year clearout – unwanted clothes, abandoned toys and many other novelty items hidden under our beds are bagged and boxed up \ud83e\uddf9<\/p>\n\n\n\n

But, if you\u2019re embracing the new year, new me<\/em> mantra via second-hand selling platforms, you should be aware of the tax implications. Nothing has changed strictly speaking tax-wise, but if you\u2019ve seen that HMRC is trending in the news, you\u2019ll know that 2024 has so far been the year of low-level tax-reporting hysteria. Yeah, it\u2019s a thing.<\/p>\n\n\n\n

No need to worry, though, as we\u2019re going to explain exactly what these tax implications are, and why people are talking about it \ud83d\udcaa<\/p>\n\n\n\n

Tell me more! <\/h2>\n\n\n\n

Whether you\u2019re an old-timer or a newcomer to the second-hand selling world, you should know that 2024 is well and truly underway, with things already changing in the realm of online selling! <\/p>\n\n\n\n

As of Monday 1st January 2024, digital sales platforms (that\u2019s any app or website that connects sellers and consumers \ud83e\udd1d), will be collecting information on their sellers. <\/p>\n\n\n\n

What type of information, you ask? Well, not your phone number or address – they probably have these already. No, we\u2019re talking about your sales \ud83d\udc40<\/p>\n\n\n\n

Why? Because HMRC<\/a> told them to – the tax office took starting the new year with a bang very seriously \ud83d\udca5<\/p>\n\n\n\n

We know this may come as a shock to second-hand sellers, but, fear not! This isn\u2019t as drastic as it sounds. <\/p>\n\n\n\n

Whilst digital platforms are collecting information on your sales, it\u2019s actually your profits that HMRC are interested in! We know, it can all be rather confusing. So let\u2019s make it clear from the get-go! <\/p>\n\n\n\n

What is Profit?<\/h3>\n\n\n<\/div> \n\n
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Profit is how much money you make once you subtract the money you\u2019ve earned from selling an item from the original price you paid \ud83d\udcb0<\/p>\n\n <\/div>\n<\/div> \n\n

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So, to be taxed on your second-hand selling, you\u2019d need to be making a profit, which generally isn\u2019t the case for people having a new year clear-out \ud83d\udc57<\/p>\n\n\n\n

For example, Emma bought a pair of Topshop Jeans for \u00a340. She doesn\u2019t like them anymore and sells them for \u00a32 on Vinted. She\u2019s not making a profit. She\u2019s decluttering her wardrobe and adding a few pounds to her rainy day fund in the process \u2614<\/p>\n\n\n\n

Tariq, on the other hand, regularly purchases clothes at a low cost from wholesalers and resells them on Depop at a much higher price. He\u2019s making a profit. <\/p>\n\n\n\n

So, if you\u2019re an Emma, you\u2019ve got nada<\/em> to worry about! And if you\u2019re a Tariq you only need to worry if you\u2019ve been evading tax\u2026 \ud83d\ude2c<\/p>\n\n\n\n

What\u2019s changed?<\/h2>\n\n\n\n

The burning question on everyone\u2019s minds \ud83d\udd25 And, to answer it, not much! <\/p>\n\n\n\n

Yep, that\u2019s correct, in tax<\/a> terms at least \ud83e\udd14<\/p>\n\n\n\n

As we mentioned earlier, second-hand selling platforms will automatically be sharing your sales with HMRC – you just can\u2019t trust anyone these days \ud83d\ude44 So, you\u2019ll only catch their eye if you\u2019re making a considerable amount from your sales, and selling a high volume.<\/p>\n\n\n<\/div> \n\n

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Here are a few things you should keep in mind:<\/p>\n