Celebrities are making thousands of pounds a year flogging their clothes on Depop amid a government crackdown on secondhand sellers.
Bankrupt Katie Price regularly uses the platform to clear out her wardrobe, raking in more than £6,500 in the last year.
The former glamour model gave a boost to her bank balance by getting rid of her unwanted items, with her children’s clothes among the items being sold for as little as £4.
Made In Chelsea’s Georgia Toffolo is another giving her income a top-up with a racy red and black nightie among the £4,000 worth of clothing she has shipped in the last 12 months.
Meanwhile, other kindhearted celebs like Frankie Bridge, Love Island’s Molly-Mae Hague and actress Maisie Williams are using the site to boost donations for charities such as Mind and Cancer Research UK.
But they could see the earnings they make take a dent amid new laws introduced by HM Revenue and Customs (HMRC) at the start of this year.
The fresh rules introduced on January 1 mean online sellers who surpass a £1,000 threshold for the year must register as self-employed and will be expected to fill out a tax return form.
It won’t affect those who are already reporting their earnings to HMRC and people won’t need to declare earnings under £1,000.
The HMRC says people selling possessions they no longer want are unlikely to owe tax, if it’s a one-off and done occasionally – and sold for less than £6,000.
They said the vast majority of people pay the correct amount of tax and HMRC uses various methods, including working with online rental and marketplace platforms, to help make it as easy as possible for people to pay the right tax.
But the Government website says if you regularly sell goods or services through an online marketplace you could be seen as trading or classed as a ‘trader’.
Digital platforms such as eBay, Airbnb, Etsy, Amazon and Vinted will have to share seller information with HMRC as part of the ‘side hustle tax’ crackdown.
HMRC says it will help them ‘detect any deliberate non-compliance, ensuring a level playing field for all taxpayers’.
It is yet to be seen what impact if any the new laws will have on preloved sites like Depop, which has risen in popularity and has been the go-to site for stars selling clothes to fans wanting to look like their idols.
Price, 45, puts her and her children’s clothes up for sale at modest prices with most items selling for less than £10 – including an orange jumper she bought from Sainsbury’s going for £4.
But the mother-of-five still managed to rake in £6,734.20.
Made In Chelsea’s Georgia Toffolo often models her own clothes on Depop with a snap of her in a skimpy red and black Boux avenue nightie helping her to flog it for £15.
According to the sold items listed on her account she has clawed in £4,421.
Former S Club Juniors singer Bridge shifted more than £10,000 worth of clothing of which all proceeds went to mental health charity Mind.
While Game of Thrones actress Maisie Williams gave the proceeds from her £5,476.50 worth of sales to Mind, Cancer Research UK and the Dolphin Project.
There is no suggestion celebrities are evading tax and MailOnline has contacted representatives of the stars mentioned in this article for further clarification.
The new tax laws have sparked fury among second-hand sellers, with some saying they are just trying to make extra cash as a result of the ‘crippling cost-of-living crisis’.
One Vinted seller told MailOnline: ‘I’m a Vinted seller. I sell mine and my children’s used items however I would say I probably made about £1500 last year doing this as I buy good quality clothing which holds a fair amount of value.
‘I have then used the money to buy more things we need or Christmas presents etc.
‘I don’t make profit – I’m selling our old items usually at a loss as they are used or unwanted. I find it incredible that the government then think they can tax that money when I’ve already paid tax on my wages as has my husband!’
They went on: ‘This is actually farcical.
‘Twenty-four staff employed to target the hard working, lower and middle classes who are selling their own belongings to get by because we’re all crippled by the cost of living crisis.’
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
