Vinted side hustlers warned over surprise HMRC tax bills

Growing numbers of people selling items on Vinted and other online platforms risk unexpected tax bills as side-hustle income pushes them over the UK's self-assessment threshold, according to self-assessment software firm GoSimpleTax.

Search interest in the term "Vinted pros" has risen by 50% over the past year on Google Trends. GoSimpleTax said this reflects more people treating resale platforms as a source of regular income rather than an occasional clear-out.

The trend coincides with a rise in second-hand gifting, described in the sector as "Thriftmas". Consumers spent more than £2 billion on second-hand gifts during the last festive season. Many casual sellers are expected to turn to resale apps again this year to raise extra cash.

Under current HMRC rules, anyone who earns more than £1,000 from self-employed work must register for self-assessment and file a tax return. The threshold covers income from gig work and online trading as well as traditional freelance activity.

HMRC advises people with untaxed income below that level to keep accurate records of income and expenses. The online deadline for filing and paying tax on earnings for the latest tax year falls at the end of January.

Side hustles surge

GoSimpleTax said awareness of these requirements remains patchy among what it describes as the UK's growing "side-hustle workforce". The company cited research indicating that two in five Britons, or 39%, now have at least one side hustle.

The average side-hustle income stands at almost £11,000 a year. That puts many people well above the £1,000 trading allowance and into self-assessment territory. Those who do not register and file on time face the risk of penalties and interest charges.

Tax treatment applies across a broad range of income sources. This includes reselling goods through platforms such as Vinted and Depop, delivering for app-based courier services, trading cryptoassets, and earning from influencer marketing or content creation.

GoSimpleTax warned that many people do not realise that regular sales through online marketplaces can count as trading rather than casual disposals. It said this is particularly likely where individuals buy items specifically to resell at a profit.

Mike Parkes, Technical Director at GoSimpleTax, said a large number of people earning extra income underestimate how quickly they can move beyond hobby status in the eyes of the tax authority.

"Side hustles are booming, but many people are unaware of their tax responsibilities. If you earn more than £1,000 a year from activities such as selling on Vinted or Etsy, delivering via Uber Eats or Deliveroo, creating content on TikTok, or freelancing on platforms like Upwork, you may need to register with HMRC and file a tax return. That £1,000 threshold sounds high, but it's just £84 a month - easy to exceed without realising. Our free calculator helps people check what they owe quickly, plan ahead, and avoid unexpected tax bills or penalties," said Mike Parkes, Technical Director, GoSimpleTax.

New calculator tool

GoSimpleTax has released a free online calculator aimed at people with side hustles and other forms of untaxed income. The tool provides an estimate of take-home pay after Income Tax and National Insurance contributions.

Users enter their total side-hustle income. The calculator then applies current tax bands and rates. Individuals can add information about business expenses as separate entries.

The software produces an estimated tax bill once these costs and allowances are taken into account. GoSimpleTax said this gives users a quick overview of their potential liability and the amount of cash they may need to set aside.

The company said demand for simple guidance on side-hustle tax rules has risen alongside the growth of online marketplaces and gig platforms. It added that people often discover their obligations only when they receive a communication from HMRC.

GoSimpleTax and its founders have specialised in tax software for more than a decade. More than 20,000 individuals currently use its products to file self-assessment and partnership returns.

The firm said it expects further growth in the number of people with multiple income streams, including platform work and social media activity. It said this will increase the need for tools that give workers a clearer view of their tax position throughout the year.