Panic as Brits with popular hobby asked for National Insurance number | UK | News
National Insurance warnings have sparked panic among Brits selling their clothes online. Vinted users trying to make extra money by selling second-hand items feared they were unintentionally affecting their taxable income.
Users who sold more than 30 items or earned £1,700 in a year reported receiving notifications asking for their NI number, as “required by UK law”. Sellers took to TikTok and Instagram to share screenshots of the notice and ask if they would face a huge tax bill.
One user on Reddit posted: “Vinted wants my National Insurance number, does that mean I have to pay tax? I barely make any money from Vinted – what happens if I ignore this?”
HMRC said the regulations were aimed at people running a resale business rather than people dismantling their wardrobes, but some could face a “very large tax bill”.
Platforms such as eBay and Airbnb, which allow people to sell products and services, are covered by new reporting regulations as of January 2024. The government stated that this would help “reduce tax evasion”.
According to Vinted, sellers who reach the threshold of 30 items or £1,700 must share information with HMRC by the end of the calendar year.
Chartered accountant Abigail Foster reassured sellers that while the message may cause panic, it is unlikely to affect most people.
“If you’re just selling your own second-hand clothes or household items, you won’t owe any tax even if Vinted shares this data with HMRC,” he said. BBC.
The accountant explained that HMRC could easily identify someone using the site to trade professionally by looking for multiple listings of the same product or items purchased and quickly resold at higher prices.
A spokesperson for HMRC said: “People remain responsible for their own tax affairs and for considering whether they need to file a tax return to report business income.
“As your side business grows, unpaid taxes may come to light.
“If you haven’t told us about the extra money you’ve earned, this could lead to an unexpected and possibly huge tax bill, so it’s really important to keep on top of your tax affairs.”
“This rule is aimed at people who are effectively running a resale business, not people who are giving away their wardrobes.”
