When jazz singer Billie van der Westhuizen first joined Vinted six months ago to clear out her wardrobe, she never imagined she’d be caught up in a wave of confusion and anxiety sweeping through the UK’s online selling community. Like thousands of others, Billie simply wanted to make some extra cash by selling clothes and shoes she no longer wore. But after selling around £500 worth of items—well below what she originally paid—she was suddenly confronted with an unexpected request: Vinted asked for her National Insurance (NI) number.
"I got really into it and was selling loads of stuff," Billie recalls, speaking to the BBC. "Then I got a message saying I needed to enter my National Insurance number. It wasn't clear at all why it was asking." She dutifully entered her details, but the reasoning behind this new requirement was fuzzy at best. Billie, 30 and based in London, remembers thinking, "I just sent it but I thought there's no way they could tax the amount of money I've made off this. 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."
Billie’s experience is far from unique. Since January 2024, digital platforms like Vinted, eBay, Etsy, Depop, and Airbnb have been subject to new UK government reporting requirements. If a user sells more than 30 items or earns over £1,700 in sales within a year, the platform must request and eventually share personal information—including name, address, and NI number—with HM Revenue & Customs (HMRC). The pop-up alert Billie saw is now a familiar sight to many, with users taking to TikTok, Instagram, and Reddit to share screenshots and voice their concerns. One Reddit user asked, "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?"
The confusion is understandable. For many, the sudden request for sensitive information feels like a harbinger of a looming tax bill. But as several experts and officials have clarified, the reality is a bit more nuanced. Chartered accountant Abigail Foster reassured sellers in an interview with the BBC, "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. This rule is aimed at people who are effectively running a resale business, not those decluttering their wardrobes."
The government’s new rules, which came into effect on January 1, 2024, are designed to "bear down on tax evasion" by increasing transparency around income earned through digital platforms. According to Vinted, information must be shared with HMRC by the end of the calendar year in which a seller crosses the 30-item or £1,700 sales threshold. But—and this is crucial—crossing that threshold does not automatically mean you owe tax. Instead, it triggers a reporting obligation for the platform, not a tax liability for the user.
So when does tax actually apply? The answer hinges on whether you’re making a profit and the nature of your sales. If you’re selling your own second-hand items for less than you paid originally, there’s no profit—and thus, no tax. Tax only comes into play if you’re buying stock specifically to resell at a profit, or if your total profit from such activities exceeds £1,000 in a year. There’s also a separate rule: if you sell an individual item for more than £6,000, you may need to pay Capital Gains Tax. HMRC even offers an online tool to help sellers determine whether they need to report their income.
Abigail Foster points out that HMRC is adept at distinguishing between casual sellers and those running a business. "It would be very easy for HMRC to tell if someone was trading by checking for multiple listings of the same product or items bought and quickly resold for higher prices," she explains. In other words, the average person clearing out their wardrobe is unlikely to attract the taxman’s attention.
Still, the specter of a large, unexpected tax bill looms for those who fail to declare relevant income. An HMRC spokesperson told the BBC, "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."
According to research commissioned by HMRC in 2022, about one in ten UK adults participates in what’s been dubbed the "hidden economy"—that is, earnings that are wholly or partially concealed from the tax authority to avoid paying taxes. The new reporting requirements are, in part, a response to this persistent issue. By requiring platforms to report high-volume or high-value sellers, HMRC hopes to close the gap and ensure everyone pays their fair share.
But for the vast majority of online sellers—those like Billie van der Westhuizen, who are simply making a bit of extra cash from items they no longer need—the message is clear: don’t panic. As Foster reiterates, "This rule is aimed at people who are effectively running a resale business, not those decluttering their wardrobes." The reporting requirement is about transparency and fairness, not about penalizing ordinary people for tidying up their homes.
That hasn’t stopped the rumor mill from spinning. Social media has been awash with speculation, with some users fearing that simply entering their NI number will trigger a tax investigation. Others wonder if ignoring the request might be a better option. But as the facts show, providing the requested information is required by law for those who cross the threshold, and failing to do so could result in platform restrictions or other complications. Ultimately, the best course of action is to comply with the request, keep good records, and use HMRC’s guidance to determine if any tax is owed.
For now, the new rules represent a shift in how the government approaches the growing world of online side hustles. They reflect a desire to clamp down on tax evasion while still recognizing the difference between professional traders and everyday people selling their old clothes. With digital marketplaces only set to grow, it’s a safe bet that further changes and clarifications are on the horizon.
For Billie and countless others, the takeaway is simple: keep calm, carry on selling, and don’t let a pop-up message spoil the satisfaction of a well-organized wardrobe.
