Why am I getting pressured to change from private seller to buisness

[cherrylips74]

I am disabled,  I sell on average less than ten items a month. No set particular item as most surplus to my requirements or I have bought and decided to sell on for a small profit ie a second hand item etc.

I haven't had any issues since I came to ebay 2008 and have had 100% feedback in all this time.

Suddenly this month ebay have started treating me appalling.  Eg when try to list an item under health and beauty it turns around and says I can't list any more high end products...ie Declor for example.  Stuff I have bought myself and no longer need or want .

I CONTACTED ebay who were useless and fobbed me off with a .gov link to a email address who apparently suppose to deal with setting limits . Am like why are you assuming am a buisness? ID Be pretty rubbish if only sold 5 items month....secondly the total in £ is less than £1500 in 90 days what sort of buisness would that be ...pretty rubbish...am just absolutely mad as hell how they will not help or listen or mediate with this other apparent government agency who apparently advised such limits never heard anything so ridiculous in my life...it applies the restriction if I want to list trm under health and beauty...if I list it under Misc....or joblot it adds the item.

I am also fed up with how my items when listed do not come up in search bar yet other sellers do despite paying extra to promote the item.

Frustrating when for eg I was selling an item at £30 and no views yet exactly same item different seller selling at £50 had 21 watcher....which makes me think ebay are getting greedy and manipulation is occurring as obviously if they sell higher item more fees for them!!! 

Any thoughts help appreciated 

[dch2112011]

The staged reporting could also be to give time to existing account holders to put their house in order - I don't know and yes it could be an ebay error - you are in a better position to find out than I am 

[*vyolla*]

None of the other online selling sites are applying this for their sellers. 

[dch2112011]

It is difficult to piece together, ebay being one of the biggest may have negotiated with HMRC or the others are simply not publicising it - who knows ? 

It would be nice if ebay and hmrc were simply open and honest but of course they will never divulge everything for fear of tipping off would be fraudsters which is fair enough so on forum's like this it is left for members to speculate and add two and two together to reach five ! and of course every opinion is correct in the eyes of the poster which can produce lively debate !

It would be nice to know the definitive answer to the point you raised it is relevant and pertinent to members who are selling personal items.

[*vyolla*]

eBay haven't negotiated anything with HMRC, all UK platforms have to report the same and so do many EU ones.

https://www.legislation.gov.uk/uksi/2023/817/contents/made

[dch2112011]

Just to confuse it further this is the take on it by Martin Lewis - this ties in with the ebay statement albeit worded differently - it makes more sense

"People call it the online selling tax, but it is international rules, meaning digital platforms will now need to share information with tax authorities, so HMRC in the UK. From the first of January, they started collecting data and they will have to share that by January next year which means they are sharing data for the calendar year 2024."

Martin explained that the only data that will be passed over from the online platforms are from people who sell over 30 items a year or people who make over 2,000 euros - so around £1,700 at the moment. He added: "So if you sold 30 items and it only added up to £200 then the data would be shared. This could be on eBay, Etsy, Vinted, Airbnb, or lots of other digital platforms."

[geosacha007]

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I do not really think anyone who is genuinely selling personal items will have much of a problem but those who sell 'personal items' continuosly over a prolonged period of time ie those who buy at car boot, charity shops and after 5 years are still claiming they are clearing the attic will have problems no matter how much they protest.

For example if you were doing a personal house clearance for probate - no problem you would have the proof and be authorised as executor to do so.

But if you are running a business doing house clearances and then selling items acquired it will be easily found out and the catalyst is probaly the criteria stated above.

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You can easily still be selling off your deceased relatives items after 5 years.  I cleared my parents house when they both ended up in long term care.  That was 2020.  They had a lot of clutter. I don't like to go much over 100 items listed and things can take years to sell so I still have not even listed everything, even though I do periodic clearouts of listed items and send them to charity.  I can see it taking several more years. 

There's also my kids old toys and mine from the 60s.  I won't go over the £1750 value in sales but the 30 items will probably get me.  I hope that HMRC will be able to see I am a private seller.

[*vyolla*]

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@dch2112011 wrote:

Just to confuse it further this is the take on it by Martin Lewis - this ties in with the ebay statement albeit worded differently - it makes more sense

"People call it the online selling tax, but it is international rules, meaning digital platforms will now need to share information with tax authorities, so HMRC in the UK. From the first of January, they started collecting data and they will have to share that by January next year which means they are sharing data for the calendar year 2024."

Martin explained that the only data that will be passed over from the online platforms are from people who sell over 30 items a year or people who make over 2,000 euros - so around £1,700 at the moment. He added: "So if you sold 30 items and it only added up to £200 then the data would be shared. This could be on eBay, Etsy, Vinted, Airbnb, or lots of other digital platforms."

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I know the person who wrote that, it's basically the same as the eBay statement. It shouldn't confuse anything.

[dch2112011]

Personally I doubt that HMRC will have any interest in your activities given the explanation and the type of items you are selling - they may ask but you have a perfectly logical explanation which ties in with your activity.

They are looking for traders avoiding tax not genuine sellers of personal items however it could be deemed that you were selling items that did not belong to you when your relatives went into care and these may not be classed as personal items. In reality I very much doubt HMRC will want to explore any of these avenues given what and how you are selling.

The problem is that everyone who hits the reporting criteria has their information forwarded to HMRC - it is how they interpret and act on the information that is not 100% clear.

If you are worried - ask HMRC or a tax advisor - what is written on this forum is all what if and maybe.

[bits_n_bobs_heaven]

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@*vyolla* wrote:

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@cherrylips74 wrote:

I am disabled

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That isn't actually relevant when it comes to registering as a business seller, it's what you're listing that defines what kind of account you should be operating on.

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Absolutely! it becomes very clear to online platforms and the programmes used as to the difference between selling personal items (private selling accounts) and items that have been purchased to pass on to make 'a little profit' (business selling account).

There's only so many of the same type of item that sellers who are off loading their personal items may have.

Even if you don't receive a letter from the HMRC about selling on eBay or any other online platform / market place, don't ever think they don't know about all sources of personal income. HMRC have been trawling through online platforms for a number of years, and the chances are, you've probably sold a few items to a few HMRC employees including tax inspectors without knowing it!

[theelench]

Yes, they probably have and no doubt those HMRC employees have been carefully recording each repeat purchase to add to their files.

I wouldn't be surprised if they've also installed secret cameras behind charity shop mirrors and using Facial Recognition programmes to watch who is buying all those old paperweights with flowers in them !

I hope that the OP isn't called Winston or Julia.

But seriously, aren't some of the suggestions on this thread getting just a tad fanciful ?

[myriad*seller]

One thing that posters have missed is that when OPs sales data is reported to HMRC in January 2025, this may impact their benefits (if they are claiming benefits due to disability).

HMRC and DWP are linked, so any sales seen as trading may impact OPs benefit entitlement and mean they may have to pay money back or may be deemed "not disabled" enough any more if they are well enough to run a business, and of course, failure to declare a change in circumstances (trading on eBay is one of those changes they must be told about)

DWP are VERY harsh in their decisions, and running a side business while claiming benefits without notifying DWP of this as a change of circumstances could be classed as benefit fraud too. 

People think their "side hustles" can be used to get them more money without thinking it through....

[destructor23]

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@myriad*seller wrote:

DWP are VERY harsh in their decisions, and running a side business while claiming benefits without notifying DWP of this as a change of circumstances could be classed as benefit fraud too. 

People think their "side hustles" can be used to get them more money without thinking it through....

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HMRC will be having field day for the next decade or two, chasing all these accounts up. 

[messier44000]

52 replies.

Where is the OP.

Asked for help and advice. Got help and advice.

And then disappeared

[destructor23]

I imagine she's been absolutely petrified at all the answers.

[dch2112011]

I think she said her account was restricted until she registered as a business  by limiting what she could sell or which category she could sell in - possibly this was the reason  her listings have been removed and she didn't get the support or magical solution from members so has done a runner best she can to facebook - etsy or the local car boot.

I do hope it is nothing more serious than that  

[moldosgifts]

Perhaps she is upset at the fact being disabled has no bearing on wether business or private. So dismissed by so many replies.

[kath3735_wxmjn]

some people cannot deal with the truth and only want to read what they want to be said!

[yorkshire*flower]

I think OP removed their listings - Initially they came here angry at their treatment from Ebay, being told that they can no longer sell in certain categories (high end decor and H&B) unless they are a business and felt Ebay were presurising them to become a business and came here to vent,  but this stems from their lack of knowledge/understanding of the law, Ebays rules on those categories and recent changes.  - I strongly suspect they have gone away, read the link I posted and perhaps rang HMRC and realised that their benefits will be effected - They may think that they are ONLY getting £500 a month but that is £6k a year and certainly above the limit.  I dont believe anyone can earn £500 a month regularly from selling their belongings and clearly the line about making "little profit" means they were selling items, maybe stuff theyve picked up from charity shops or £1 shops to make a few quid but they were certainly making extra cash that they have done for years.

[kempseykate]

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@yorkshire*flower wrote:

I think OP removed their listings - Initially they came here angry at their treatment from Ebay, being told that they can no longer sell in certain categories (high end decor and H&B) unless they are a business ...

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It was Health & Beauty category, high end brands they were having issues with. Declor is a beauty brand.