Side hustle & Vinted tax calculator
Selling your old clothes is usually tax-free. Buying or making things to sell is trading, and that can be taxed. Start with which one you are doing.
Trading or only selling your own possessions
The dividing line is intent. Selling clothes, furniture or gadgets you once bought for yourself is not trading and is not taxable income, even now that platforms share sales data with HMRC. It becomes trading when you buy, make or source items specifically to sell them on at a profit, or do it with the regularity of a business. Only trading income counts here.
Once you are trading, the £1,000 trading allowance is the first shield. If your trading income for the year is £1,000 or less, there is nothing to pay and nothing to report. Above £1,000 you take the better of two deductions: the flat £1,000 allowance, or your actual expenses. Whatever is left is taxed at your marginal rate on top of your job, with Class 4 National Insurance if the profit clears £12,570.
Worked example
On a £32,000 salary you are a basic-rate taxpayer. You make £3,000 reselling, with £400 of postage and packaging. The £1,000 allowance exceeds your £400 of costs, so your taxable profit is £2,000. At 20% that is £400 of tax, with no Class 4 NI because the profit is under £12,570. You keep £2,600 of the £3,000.
Common questions
Do I pay tax on Vinted sales?
Usually not if you are only selling your own used clothes and belongings. That is not trading and it is not taxable income. You only fall into tax if you are buying or making things to sell for profit, which is trading.
What is the £1,000 trading allowance?
If your trading income for the year is £1,000 or less, it is tax-free and you do not need to tell HMRC. Above £1,000 you can either deduct the £1,000 allowance as a flat deduction or claim your real expenses, whichever leaves you paying less.
Does Vinted report my sales to HMRC, and does that mean I owe tax?
Platforms now share seller data with HMRC, but sharing data is not the same as owing tax. If you are only selling personal possessions there is nothing to pay. The reporting simply means it is worth being clear about which side of the trading line you are on.
How much tax will I pay on a side hustle?
It is charged at your marginal rate on top of your job. On a £32,000 salary with £3,000 of trading income and £400 of costs, you would pay about £400, keeping £2,600 of the £3,000.
When does selling personal items become taxable?
If you sell a single personal possession for more than £6,000 you may owe Capital Gains Tax on the gain, though most second-hand clothes and household items sell for far less and are exempt. The taxable trap is trading, not the occasional high-value item.