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Jazz vocalist Billie van der Westhuizen began using the online marketplace Vinted about six months ago to sell clothing and shoes she no longer wore. She quickly became enthusiastic about listing many items but was taken aback when she received a request to provide her National Insurance (NI) number. Billie recalls, “I got really into it and was selling loads of stuff. Then I got a message saying I needed to enter my National Insurance number. It wasn’t clear at all why it was asking.”
The request has left numerous Vinted users puzzled, especially since the platform requires NI numbers from individuals who have sold 30 items or made £1,700 within a year. Some sellers, including Billie, have expressed concerns about whether this means they will now owe tax on their sales. However, the introduction of this requirement is not the result of changes in taxation policy but rather due to regulatory obligations for websites and apps that facilitate the sale of goods or services, such as eBay, Etsy, Depop, and Airbnb.
Billie, 30, from London, eventually provided her NI number despite uncertainty about the purpose of the request. “I just sent it but I thought there’s no way they could tax the amount of money I’ve made off this,” she explained. “If I was making thousands maybe, but I reckon I’ve made maybe £500 and I’m selling things for less than I paid for them.” Vinted’s pop-up alert directs users to submit personal details, including their name, address, and NI number, citing a requirement under UK law. This has sparked widespread discussion on social media, with users questioning whether sharing such information will inevitably result in taxation or if providing details is optional.
Chartered accountant Abigail Foster offers reassurance to those worried. She clarifies that for the majority of users—those simply selling their own second-hand possessions—owing tax is unlikely. Foster noted, “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 emphasized that these rules primarily target individuals operating resale businesses rather than casual sellers clearing out their wardrobes. HMRC can detect commercial trading by monitoring multiple listings of identical items or instances where products are purchased and quickly resold for profit.
New digital platform reporting rules took effect on 1 January 2024, intended to help HMRC crack down on tax evasion. Users hit with the 30-item or £1,700 sales threshold must have their details submitted to HMRC by the end of the calendar year. An HMRC spokesperson stressed the importance for sellers to understand their tax responsibilities: “People remain responsible for their own tax affairs, and for assessing whether they need to complete a tax return to report trading income.” They added, “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.”
According to research commissioned by HMRC in 2022, approximately one in ten UK adults engage in what is termed the “hidden economy,” involving earnings hidden partly or entirely to avoid tax. This new reporting framework aims to increase transparency in peer-to-peer sales on digital platforms, ensuring compliance without penalizing casual sellers
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