eBay

dave-u-3 · ‎04-04-2024

I am thinking of selling a few personal items on eBay especially from our newborn as we purchased these (second hand) however are no longer in need of them and some are quite expensive devices/electronics. I have my own personal eBay account but have sold quite a few items already this year (still below threshold). Therefore am thinking of letting my wife open an account and sell these instead.

What exact periods/timelines are initially going to be reported to HMRC once eBays thresholds have been met? It still remains unclear to me after seeing similar questions asked but no clear definitive answer given?

A few points below to follow the 'train of thought'.

- This new regulation came into force on "1st January 2024":

(https://www.legislation.gov.uk/uksi/2023/817/part/1/made)

- "Starting January 2025, eBay will begin annually reporting to HMRC. Each January we will report for the previous year":

(https://www.ebay.co.uk/help/account/regulatory/uk-digital-sales-reporting?id=5454#:~:text=As%20a%20U....)

To me it seems clear that the FIRST report IF the threshold is met would be on January 2025 and this would contain data in relation to the previous year i.e. January 2024. I am aware that in the UK tax year is not January to January so not sure how HMRC will process that data but that is not relevant to the query.

Asking for clarification as previously there was mention from eBay about new users in 2024, and existing users in 2025 and reporting, also on a separate topic on this forum someone mentioned that the last 3 months of 2023 would be reported to HMRC (can't see where this was taken from nothing online states this)? Seems to be a lot of confusion/misinformation?

On a side note, how enforceable is all this in actual fact as it seems eBay is relying on its users to simply cooperate? "eBay will notify you when you have crossed these thresholds. When prompted to do so, please provide eBay the requested tax identification information specific to you as a business or individual". As an individual eBay does not request tax identification information initially upon sign up, so simply not providing this may impact payouts from eBay and keep your money in limbo I guess? Also if in theory you 'hit' that threshold and you were to cancel the sale or partial refund would this 'reverse' it? Some food for thought I guess.

papso22 · ‎04-04-2024

The first report (in January 2025) will cover the calendar year of 2024 and include members whose sales in that period exceeded one of the two thresholds.

Ebay has not announced what non compliance by members will lead to.

*vyolla* · ‎04-04-2024

@dave-u-3 wrote:

Asking for clarification as previously there was mention from eBay about new users in 2024, and existing users in 2025 and reporting, also on a separate topic on this forum someone mentioned that the last 3 months of 2023 would be reported to HMRC (can't see where this was taken from nothing online states this)? Seems to be a lot of confusion/misinformation?

We believe that eBay have got it wrong about the new users, it doesn't really make any sense and there's no mention of this anywhere else.

What's being reported to HMRC is sales from 1st Jan 2024 (excluding cancelled orders) that exceed more than 30 in number or £1,740 after deducting fees (whichever is met first).

So, the first lot of data-sharing will cover the 2023/24 tax year in as much as HMRC will be given sales information for the first quarter of 2024.

At a guess, if the criteria is met and eBay request a national insurance number and this is refused then I'd say that it's likely that eBay will no longer allow that seller to list anything on eBay, and it's also possible that HMRC will want a list of sellers who have refused to supply the requested info (only because that would be a bit of a red flag).

It would make sense for your wife to have her own eBay account, there's no reason not to.