HMRC issues two-week warning to anyone who sells on Vinted or eBay – check if you need to act NOW
WITH just two weeks until the Self-Assessment deadline, HM Revenue and Customs (HMRC) is urging millions of taxpayers to file their tax return.
Alongside completing the paperwork, Brits must also pay any tax due by 31 January, or pay a fine.
This can include people who sell things online through platforms such as eBay and Vinted.
For instance, you might need to register for self-assessment and pay tax if you make made more than £1,000 before deducting expenses through:
- buying goods for resale or making goods with the intention of selling them for a profit
- offering a service through a digital platform – such as being a delivery driver or letting out a holiday home through a website
The taxman says that more than 7.4 million people have already filed for the 2023 to 2024 tax year, but there are still millions of people who haven’t yet completed their returns.
On Jan 5, HMRC said that over 5.4 million people still needed to submit.
Anyone who misses the deadline faces a £100 late filing penalty, even if they don’t owe any tax at all. For people who do have a bill to pay, fines will escalate if the money isn’t transferred on time.
The penalties for late tax returns are:
- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is greater
If you miss the January 31 deadline to pay the bill, you face additional fines of 5% of the tax unpaid at 30 days, 6 months and 12 months. Interest will also be charged on the amount owed.
HMRC is urging people who think that they might need to complete an online return to act now and make use of the wide range of support available.
Myrtle Lloyd, HMRC’s director general for customer services at HMRC, said: “The self-assessment deadline is fast approaching, don’t leave completing your tax return to the last minute.”
Urgent warning for people who sell online
One significant area of concern is online sellers, who may not realise they need to file a return or pay tax.
And the rules have changed this year, meaning platforms like Vinted or eBay must alert HMRC about sellers who make more than 30 transactions in a year, or who sell goods worth more than £1,700.
That doesn’t mean you’ll automatically have to pay tax, that depends on what you’re selling and why.
And even if you don’t meet these thresholds, you might still need to complete a tax return if you’re selling things to make a profit, or selling things you’ve made – and you earn more than £1,000 a year.
Anyone who regularly sells goods or provides a service through an online platform can find out more about tax here. This should help you decide if your activity should be treated as a trade and if you need to complete a Self-Assessment tax return.
Angela MacDonald, HMRC’s second permanent secretary and deputy chief executive officer, said: “We cannot be clearer – if you are not trading and just occasionally sell unwanted items online – there is no tax due.
“As has always been the case, some people who are trading through websites or selling services online may need to be paying tax and registering for Self-Assessment.”
The new reporting requirements for digital platforms came into effect at the start of 2024. It is not a new tax and whether people are selling personal items on eBay, renting homes out on Airbnb or delivering takeaways through Just Eat – no tax rules have changed.
How to file your tax return
If you’re new to self-assessment, you need to register before you can file. You need to do this as soon as possible, because it can take up to ten days before you receive your Unique Taxpayer Reference (UTR).
This is the code that you need to access HMRC Online Services or the HMRC app. Without it, you won’t be able to fill in your return and your tax payment will be late.
HMRC provides free, easy to access resources on GOV.UK to guide people through the filing process including detailed support and guidance, webinars, helpsheets and videos on YouTube.
Here are some of the main sources of support available:
- HMRC’s digital assistant helps you find information, or ask to speak to an adviser.
- Guidance notes and help sheets explain exactly how to fill in your return
- YouTube videos provide a wealth of information if you’re stuck or confused.
- Live webinars where you can ask questions or if you can’t join, you can watch recorded webinars on demand.
- HMRC app and Personal Tax Account – instantly find your Unique Taxpayer Reference, make a self-assessment payment, get your National Insurance number and get your employment income and history for your tax return.
- HMRC online services – you can find your tax calculation, statements, previous tax returns and complete your online tax return which has integrated help and support included at every step.
If you need extra help with your tax, you can contact a voluntary or community sector organisation or get support directly from HMRC.
Do I need to do a return?
You may need to file a return if you:
- are newly self-employed and earned a gross income of more than £1,000 in the tax year
- earned below £1,000 but want to pay Class 2 National Insurance Contributions voluntarily to protect your state pension or access to other benefits
- are a new partner in a business partnership
- have received any untaxed income over £2,500
- receive Child Benefit payments and need to pay the High Income Child Benefit Charge because you or your partner earned more than £50,000
If you used to self-assess but think you don’t need to file anymore, for instance because you’re now working full time for an employer, you need to let HMRC know using this online form.
Paying tax on second-hand sales
If you have made 30 sales or £1,700 this year you will be contacted by Vinted and asked to submit the seller report form on the app.
If you do not hear from Vinted then you don’t need to do anything, though you may need to file a tax return for other reasons.
Users who meet the criteria will be asked to add their National Insurance Number to a pre-filled form and check the details are correct before submitting it.
This will be done on the Vinted app.
You don’t need to calculate or count anything yourself.
A Vinted spokesperson said: “Reporting members’ details to the authorities does not necessarily lead to taxation.
“Taxation is a separate matter that doesn’t depend on HMRC reporting.”
They added: “HMRC requires Vinted to collect information from members who meet the criteria mentioned above, regardless of whether or not their earnings are taxable.”
Vinted said that it will be getting in contact with users who need to fill out these forms towards the end of the year.
What that means in practice is that money you make may be reported to the taxman if it’s over the amounts above.
Whether or not you have to pay tax will depend on your wider circumstances.
The majority of people pay income tax automatically through employment via what’s known as PAYE.
How do I pay my tax bill
You can pay any tax owed through the HMRC app or online via the gov.uk website.
How much time you need to allow depends on how you pay. You can do same or next-day transactions through your online bank account, by online or telephone banking using faster payments, by CHAPSs, by debit card, or at your bank or building society.
If you’re paying by BACs, direct debit, or cheque, you will need at least three working days for the payments to clear. If it’s a new direct debit you’ll need five working days.
You can pay the amount you owe in instalments before the deadline, if you prefer. You can do this by setting up weekly or monthly payments towards your bill or making one-off payments through your online bank account, using online or telephone banking (Faster Payments), setting up single Direct Debits or by posting cheques
You can get help if you cannot pay your tax bill on time.
Meanwhile, over three million households are owed a combined total of £544million in council tax refunds, according to a Sun investigation.
The average refund due is around £178, but some could be owed as much as £3,659.
You can check whether you could be eligible for a tax refund using The Sun’s tool.
Elsewhere, a finance expert explains how Brits can reclaim up to £6,139 in 2025 including tax over payments.