Vinted have updated their T & C's with regard to HMRC

[brindsey]

Sent under cover of an email  22nd April:

"2.8.3.To report your earnings and taxpayer information

If you reach a certain amount of sales or earnings, we are obliged to collect and report your earnings and taxpayer information to HM Revenue & Customs (HMRC). This is a legal requirement under the Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023.

For more information, please read our Help Center.

If this applies to you, we will collect and use the following data for reporting purposes:

1. Full name;
2. Primary address; 
3. Tax identification number (TIN) and place of issue;
4. Date of birth;
5. Residence country for taxpaying purposes;
6. Sales revenue per year;
7. Number of transactions completed per year; and
8. Financial account identifiers (e.g. bank account information). "

The Help Center link works 

[theelench]

Re -reading the thread before it disappears down the pages, I noticed your comment "Still not sure how fragmented sales on a variety of platforms will be consolidated..."

I mentioned on an earlier thread about the new reporting rules for all platforms that I think this is only the beginning and as with many taxes, it will be refined and subject to 'creep' as ways of getting around the thresholds are identified.

I can't see that the thresholds, especially the "30 items", will last very long.  IMO, sooner rather than later, it will be reduced so that all private sales above a 'handful' per year will have to be reported.  Even if the threshold stays at 30, the NINO of the seller will be reported each year if they sell (say) 6 items.   HMRC will then quickly be able to sort for NINO's that are selling a few items on multiple sites and investigate further.

Apart from my objection to giving ebay my NINO as it's an overseas owned company, if I'm going to be investigated because I sell more than 30 (personal) items in a year I'd prefer to have all the evidence of my activities on one site, not spread over two, which will only complicate the matter.

[a45heaven]

Multiple selling names on multiple none UK platforms - i cant see how that will work, but heigh ho lets see how Mickey Mouse efforts pan out - much more so when its all going thru a FUJITSU system at HMRC - what could possibly go wrong?

[papso22]

"I mentioned on an earlier thread about the new reporting rules for all platforms that I think this is only the beginning and as with many taxes, it will be refined and subject to 'creep' as ways of getting around the thresholds are identified."

Only if all the countries that signed up to the new regulations agree to a change, I think that is extremely unlikely.  

"I can't see that the thresholds, especially the "30 items", will last very long.  IMO, sooner rather than later, it will be reduced so that all private sales above a 'handful' per year will have to be reported.  Even if the threshold stays at 30, the NINO of the seller will be reported each year if they sell (say) 6 items.   HMRC will then quickly be able to sort for NINO's that are selling a few items on multiple sites and investigate further."

See above.  Also there is no support for your statement that the NINO gets reported every year regardless of sales volume.  A seller (and their NINO) will only be reported in each yearly report if they have exceeded one of the thresholds on that particular digital site.  It's not a case of once reported always reported.  So 40 sales on ebay and 5 on Vinted will only result in the 40 ebay sales being reported.  While that may seem like a loophole, I am sure HMRC will have better things to do that worry about what might be under the threshold on other sites and hence not reported.   

[myriad*seller]

The multiple accounts will all have the same NINO or UTR though (even across multiple platforms), so eBay/HMRC will know the accounts are all the same person... 

[myriad*seller]

I can forsee lots of benefit fraud investigations upcoming in Jan 2025 when all the sellers who were told they could do a "side hustle" to make some extra cash... but forgot to read the tiny small print regarding declaring sales

I hope the MLM companies are also forced to collate this data and give it to HMRC!! 

[theelench]

Please read my original para. 3 again.  I make it quite clear that it is my conjecture of what is, IMO, likely to happen once these new reporting regs. are in operation.  So there is no evidence --  yet.

Although there are thresholds that have been agreed to by all members of the OECD and I admit I haven't read any further details than have been revealed here, I'd bet that with 30(?) countries involved there are some provisions that allow each country to adapt how it carries out its obligations within the peculiarities of its own tax system.

My guess is that while sites are required to report sales data over the agreed thresholds, HMRC will pretty soon see the advantages of also 'requesting' the NINOs (but not the sales data) of anyone selling (say) 6 items a year.  As has been said so often on these threads, it will be easy for AI to sift through millions of NINOs from different sites to see which ones are selling on more than one site. 

These could well be subject to further investigation IMO.

[4_bathrooms]

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@theelench wrote:

Although there are thresholds that have been agreed to by all members of the OECD and I admit I haven't read any further details than have been revealed here, I'd bet that with 30(?) countries involved there are some provisions that allow each country to adapt how it carries out its obligations within the peculiarities of its own tax system.

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The "Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Econo..." were actually agreed by all member countries and introduced into their respective national legislatures pretty much verbatim. This is why the UK has an odd ~£1,750 threshold; the actual limit set by the OECD was €2,000. I imagine this is because most of the countries involved - and therefore most of the reports - will be using euros as the currency.

The reports are sent in a common XML format that was defined by the OECD; this is likely to make it easier for the "platform operators" to meet the obligations rather than the tax authorities they will be reporting to.

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@theelench wrote:

My guess is that while sites are required to report sales data over the agreed thresholds, HMRC will pretty soon see the advantages of also 'requesting' the NINOs (but not the sales data) of anyone selling (say) 6 items a year. 

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I don't think HMRC wants nor needs everybody's NINO; HMRC already has access to all sales conducted through eBay UK via Connect. The Anti-Money Laundering Regulations "know your customer" checks that eBay is obliged to perform mean HMRC already has access to the identity of anyone who sells above an already low threshold. In fact, I think it likely this is all an unwelcome extra burden for HMRC as eBay is now obliged to report information to them that they already had access to. HMRC can easily cross-reference a verified identity to a NINO, UTR or anything else they hold a record for.