Ebay to report sales to HMRC

[foz]

Key phrase is ‘earns’ more than £1k.

Buy a rear mech for £25, sell it a year later for £25, you’ve ‘earned’ nothing.

Of course, flippers and strippers and those who look to profit from our ‘hobby’ should start to consider keeping more accurate records

I am sure plenty of people on here and other hobby forums sell goods for more than 1k in a year... that might not be "profit" but how can that be proven? do we now all need to keep accurate accounting records of what we buy and sell, when and for how much?

 

[mk one]

Yes that would be classed as trading.

The key is to keep records of purchase prices , and what that bike split for. Remember to deduct any costs / fuel. The key is likely to make sure those numbers are the same and you are left with ‘stock’ you’ll keep forever

No, that is not trading. Trading is buying something with the intention of selling it on to make a profit.

 

[d8mok]

I am sure plenty of people on here and other hobby forums sell goods for more than 1k in a year... that might not be "profit" but how can that be proven? do we now all need to keep accurate accounting records of what we buy and sell, when and for how much?

It’ll trigger a self assessment and then it’s down to the person to declare or not declare what they see fit. If investigated further it’ll need to proved what was actually profit.

I suspect used old tatty bike parts isn’t their area which they are striking against.

 

[mk one]

Hobbyists and collectors can sell their collections and it is not classed as trading by the hmrc.

 

[Russell]

do we now all need to keep accurate accounting records of what we buy and sell, when and for how much?

Yes, that’s exactly what you should do. If you’re making more than £1000 a year profit, why would you not do this, to cover your arse in case of investigation if nothing else.

 

[mk one]

I will dig the paperwork out regarding trading and collecting I have from hmrc, as mentioned above though, it has to have been purchased with the intention of selling it.

 

[d8mok]

Hobbyists and collectors can sell their collections and it is not classed as trading by the hmrc.

It is once you go past £1000. That hasn’t changed. It will trigger a brown envelope. What you do with that is your choice …..

It’s merely that HMRC now will have eBay’s info automatically rather than having to request it.

 

[fettler]

It only applies to traders.

And that's the grey area for a lot of people, especially those selling retro bike bits.
I've just clocked a private seller on ebay, over 180 items, 35 chainsets up to £500. Nearly 70 rear mechs, over 30 front mechs. Most shops don't hold that much stock and it's being sold and added constantly.

 

[mk one]

It is once you go past £1000. That hasn’t changed. It will trigger a brown envelope. What you do with that is your choice …..

It’s merely that HMRC now will have eBay’s info automatically rather than having to request it.

Only if you are selling it to make a profit, hence the word trading.

If you sell your car for 1200 you do not have to declare it to hmrc, only if you bought it to sell on.

 

[foz]

Yes, that’s exactly what you should do. If you’re making more than £1000 a year profit, why would you not do this, to cover your arse in case of investigation if nothing else.

how do they definre this though? I have a couple of bikes that I have had for several years (many, in some cases) that I no longer ride and don't want to part with, but what if I do decide to sell? they would be worth more than 1k, so would that be taxable? what about that NOS part that decades ago cost a fiver, but could now be sold for 100 quid? is that 95 quid profit, or does the fact that it's been sitting unused in someone's parts draw for 30 years mean it doesn't count as profit? If I find a part in an LBS for peanuts and sell it the next day for 20 times what I just paid, then that could obviously be classed as buying with intention to sell, but then how would they know when I actually bought it and if that was my intention or not?