Anyone declaring eBay income to the HMRC?

[sparkybhp]

Just wondered if anyone here is declaring eBay income to the tax man?
Through buying and selling on eBay I might exceed the £2500 in income - even though I spend that and more on the hobby buying bikes/parts etc..
Do you think I’d need to declare this - I know eBay is now duty bound to notify HMRC of earnings. Are they likely to come after me and people in my position to pay tax on it? Can they really police this - it must be a huge proportion of people I’d have thought.
Any thoughts??

 

[legrandefromage]

only iif you are Gannygear

you're not him are you

 

[bikeworkshop]

If you pass ebay's threshold, they will notify hmrc.
In which case someone there will pull up your file at the least.

If all your tax dealings are hunky dory otherwise, worst case they'll ask you to account for it and pay some tax.

If it looks like you run a hair salon, you're claiming the VAT back off flocks of sheep at the NI/Eire border and running a dozen asylum seekers on your deliveroo account, they might pay a visit.

Only Might though.

 

[d8mok]

You’ll get a letter asking if you need to declare anything by self assessment.

Then it’s down to whatever you feel fit.

 

[sparkybhp]

I just found a page on the government website where you answer questions about the additional income. It seems if the items are personal possessions (I.e: not bought with the intention of reselling for profit) then they don’t need to be notified.
I would put myself in that category as I’m buying bikes to use for parts and selling on what I don’t need (for the most part anyway).
Often I sell bikes at a loss when I get bored of them just to make space for something else.
I guess we’ll see - I’m not heaps over the threshold anyway.

 

[d8mok]

The rules haven’t changed. Just now eBay reports your sales above the limit and eBay seem keen to move people onto business accounts.

I have a business account and a private one.

 

[Russell]

…buying bikes to use for parts and selling on what I don’t need (for the most part anyway).

= trading.

If you get a letter from HMRC, take your choice as to whether you declare or not but be prepared just in case they choose to folllow up.

 

[Takingabreak]

If I buy a bike for £5k and sell it for £3k a few years later, do I declare £3k earnings or £2k loss?

 

[d8mok]

If I buy a bike for £5k and sell it for £3k a few years later, do I declare £3k earnings or £2k loss?

You declare nothing as it’s been your possession which you’ve used and sold on.

 

[bikeworkshop]

If I buy a bike for £5k and sell it for £3k a few years later, do I declare £3k earnings or £2k loss?

Unless you've also bought and sold other stuff that made a profit in which case you can count this against it if you need to.