Ebay to report sales to HMRC
- Thread starter d8mok
- Start date
Buying and selling personal items is not a problem, as @mk one , but frequency comes into it to. If you buy 20 cars this year and sell each one on, even if you don't make a profit, your activities are going to look decidedly suspicious to the tax man.....who may want to start poking his nose in.
All they are saying is that, you may not be doing anything wrong buying and selling personal effects, but if your looking suspect, expect a call.
And they are buggers to get rid of!
All they are saying is that, you may not be doing anything wrong buying and selling personal effects, but if your looking suspect, expect a call.
And they are buggers to get rid of!
It’s literally called “hobby allowance”. It hasn’t changed in that you are allowed £1000 earnings. It doesn’t use the word profit or turnover.
Are you an accountant?
Exactly. It’s all about the trigger points in which HMRC will take a look at you.
Asking for a friend...
I read some of it yesterday but my interest waned before i could find the answer to my question.. maybe i just fell asleep, anywho folks with more stamina might be able to answer it..
My 'friend' sells a bit through ebay, mainly clothing which i don't wear now i'm a full time cycle commuter.. some of this clothing is worth a few quid, but it also cost me a few quid, i'm not selling any of it for above what i paid therefore would this be considered a financial loss rather than a taxable gain?
There are a few old pairs of vintage sneakers i've sold for well above RRP but the vast majority of my sales come at a loss to me.. for instance, i sold a jacket a few months ago for £1100 but it cost me £1450 (¥270,000) so would HMRC consider this a £1100 taxable profit or a £350 loss? .. if so.. is that loss offset against my occasional gain?
It would be offset.
You are applying everything to trading, a buisness with the intention of making a profit. Personal items are only taxable above £6000 and then not all personal items are included.
The people they are interested in are the ones who are clearly running a business under the guise of personal selling.
There was even some idiots on tv last year, who were on a programme about "coping on benefits", who delared on camera that they boost their benefit income by buying clothes in charity shops and selling them on line....the second guy was doing the same with selling plants to a nursery!
HELLO! ......Your running a business.....
There was even some idiots on tv last year, who were on a programme about "coping on benefits", who delared on camera that they boost their benefit income by buying clothes in charity shops and selling them on line....the second guy was doing the same with selling plants to a nursery!
HELLO! ......Your running a business.....
I’ve never once said any tax is due. You are reading everyone’s else’s post and applying them to me.
I’ve simply stated the £1000 hobby rule is now being used to its potential as eBay will be reporting sales which will trigger an envelope. Many PAYE and benefits recipients will know be needing to file self assessment because of this.
If you are selling personal items , and go over £1000 you simply state you have nothing to declare. It’s down to the person to prove only if HMrC go further.
You mean £6000 in capital gains? That’s different page all together.
I’ll ask again …..Are you an accountant?
Im not an accountant , but I pay a decent amount each month to one. I also sell as my full time employment on Amazon / eBay so feel like I know a little around the subject.
Not trying to argue just trying to clear some of the scaremongering going around at the moment.
Nothing has changed, if someone trades in items then they are eligible for tax and should register with hmrc, if you do not trade then you do not need to register with hmrc and no need to declare anything. Same as it has always been.
And I think the Capital Gains Tax is relevant as that applies to personal items, the main concern of sellers on here, if they are not selling items they bought with the intention of making a profit and merely selling their own items which they have owned for however long, then they are only subject to the CGT if any single item sells for over £6000.
Anyway, there is plenty of information on government sites for anyone concerned about the current implications and where they stand. Here is a quick example of many, grabbed off a gov. site that helps explain the criteria for trading vs selling personal items, hopefully it may help some.
"Ravi stays at home looking after his twin 18 month old daughters whilst his wife works full-time.
During a spring-clean, he finds his old collection of cricket magazines and Wisden books, and decides to get rid of them as they are taking up space.
He advertises all the items for sale in the classified section of a magazine and sells them for £80. Encouraged by this he has a rummage in his garage and finds a number of other items he can auction. In the next month, he sells five items for a total of £120. Later in the year, he sells his old car for £300. Over the next 12 months, Ravi sells another ten personal items in this way, for a total of £140.
Ravi is not trading. There is nothing commercial about this. His original purchases were for personal use and he is selling items that he has owned for some time. None of his personal items were individually worth more than £6,000 when sold."
Certainly not looking to argue.
Again , I’ve never said that anyone has to pay tax , or will have any tax due to pay.
Please carefully read my point ……
I’m saying that now eBay will report sales data to HMRC. This will at some threshold trigger a self assessment to be sent to the eBay user for going beyond £1000 or whatever.
In your example above , the person would simply have nothing to declare. But would now likely get a brown envelope asking to do so. This will be alien to many people as most are PAYE.
I’ve never once said that anyone selling their own items will be paying tax. Same as if I sold any of my private possessions that won’t.
