ARE you trying to flog your old clothes – but don’t seem to be making any money?
While most of us have heard of Vinted – where some have made a fortune of £18k – there are also other sites to check out.
The woman started flogging her old clothes online after she lost weight[/caption]
In just seven months, Jess had raked in a whopping £18k thanks to this side hustle[/caption]
This is what one savvy Brit, TikToker Jess, recently shared online after raking in close to £20k in less than a year.
Jess, who posts under the username @jess.vintage.revivals, started selling items from wardrobe after an epic body transformation.
As none of the old clothes no longer fit her, she decided to sell them online – before realising she had ”the bug for reselling”.
Reselling involves purchasing products from various sources , such as manufacturers, liquidators, individuals and charity shops, and then selling them at a higher price to generate profit.
Resellers determine a price that covers their costs, for instance, the purchase price of the product and any shipping costs, and allows them to make a profit.
They then sell these products through various channels, including Amazon, eBay, Etsy and Vinted.
”It started off small and I scaled it from there,” said Jess who moved from her ”items to charity shops to wholesale”.
As well as flogging the goods on Vinted, eBay and Depop, Jess also uses a little-known site to cash in – Whatnot.
The ”vintage clothing reseller” explained: ”Whatnot is a live auction selling website.
”They have an app […] and it’s a really, really nice platform with lovely people and lots of sellers, and lots of buyers.
”What I will do is I will get all my items ready and I will show those items on the screen and then people will bid if they want to buy that item.”
According to Jess, you can start at different prices, such as £1, £3 and £5 – which is ”entirely up to you”.
The site – where you can also feature the products front-and-center rather than showing your faces – also offers pre-paid shipping labels.
Once you’ve made a sale, slap the label on the box and send it out for delivery.
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income – but you need to know the rules.
When you’re employed the company you work for takes the tax from your earnings and pays HMRC so you don’t have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: “Caution should be taken if you’re earning an additional income, as this is likely to be taxable.
“The side hustle could be treated as taxable trading income, which can include providing services or selling products.”
You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you’ll usually need to pay tax.
Stephen added: “You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
“The applicable tax bands and the amount of tax you need to pay will depend on your income.”
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe – plus extra fees on top.
According to Whatnot, 48-72 hours after the order is delivered, you can cash out via direct deposit.
It doesn’t have to be just clothing you’re tying to cash in from – the sellers flog electronics, collectibles, beauty, live plants, and more.
Raving about the little-known site, Jess said in a video: ”I personally kind of think it kind of has revolutionised the way we resell things.
”The thing I love the most about it is that when I get my stock in, I can show it on the screen […] and then you buy it.
”I post it out within a couple of days – so it really stops that whole issue of having to store items for a really, really long time.”
While there are plenty of pros, Jess also noted the platform does have its cons, such as the fees.
Seller fees are as follows:
- 8% commission on the sold price of an item when it sells
- 2.9% + 30 cents (24p) payment processing fee for the entire transaction
- Payment processing applies to the subtotal, tax, and shipping price paid by a buyer for a given order
- The payment processing fee is not currently applied to any international shipping/taxes.
”But with a lot of reseller websites, there are fees anyway.
”The other cons can be the price points – you might not always get the same prices you would on things like eBay, Depop and Vinted.”
Jess also added under another video that she’s ”registered as a sole trader and will pay tax during the self assessment window”.
