topic Re: EBay it’s the end for private sellers. in Seller Central

topic Re: EBay it’s the end for private sellers. in Seller Central https://community.ebay.co.uk/t5/Seller-Central/EBay-it-s-the-end-for-private-sellers/m-p/7787440#M708322 <P>Do you have a link for the information quoted?</P><UL><LI><STRONG><EM>If you earn more than £1,000 per year from selling on eBay, you </EM></STRONG><EM>may</EM><STRONG><EM> need to register for Self-Assessment and pay income tax</EM></STRONG></LI><LI> </LI><LI><STRONG>May</STRONG><EM> being the operative word here...and further research shows that information regarding " ebay or other online sales  shows information  that may require a self assessment tax return...ie. a declaration of income.  Remember there is also the  tax free allowance of £12570 per year. </EM></LI></UL><P><a href="https://community.ebay.co.uk/t5/user/viewprofilepage/user-id/11506858">@henley-theatre-services</a> </P><P>Below is some further information sourced to assist... </P><UL><LI>If you are running a business with a view to making a profit, then that is considered trading income. In the context of selling goods, this may include buying in items to resell or making/improving things specifically to sell on for a profit. <SPAN>There are a number of indicators of trading which HMRC use, these are called ‘badges of trade’ and include the intention to make a profit and are explained in more detail on </SPAN><A class="" title="(opens in a new window)" href="https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205" target="_blank" rel="noopener noreferrer">GOV.UK</A><SPAN>. </SPAN></LI><LI>If you receive income on a more casual basis this is sometimes called <A href="https://www.litrg.org.uk/tax-nic/income-tax/working-out-what-taxable/taxable-income#6" target="_blank" rel="noopener">miscellaneous income</A>. For example, this might include income from a hobby. This activity might not meet the ‘badges of trade’, but is still relevant for income tax.</LI><LI>If you are selling unwanted personal possessions such as old toys or clothes, this would not be classed as trading or miscellaneous income, and there is usually no tax to pay. In some circumstances there may be capital gains tax when selling valuable items such as jewellery, this is covered in our <A href="https://www.litrg.org.uk/sites/default/files/240109%20OECD%20rules%20flowchart_0.pdf" target="_blank" rel="noopener">flowchart</A>.</LI></UL><P> </P><P><EM>The new online selling reporting " rule" is to garner more visibility from online selling platforms for HMRC ( i.e income/tax purposes).  Each circumstance is individual and need to research for themselves... or give HMRC a call for help...Self employment and self assessment are two different things... the specific criteria for such is laid out on the Gov website. There is no new tax and </EM></P><P><EM>selling unwanted personal items as a " private seller" is not subjected to the HMRC £1000 trading allowance, as there is no trading nor business activities, however they may be subject to Capital Gains Tax if of high value and a profit has been made. Some come under miscellaneous income ( this could be a hobby seller) or trade income if  "conditions" are met to use the trading allowance. </EM></P><P> </P><P> </P><OL><LI>The main exceptions are if someone is not trading, for example, they are selling their own unwanted personal items (note, however, that some high value personal items sold for a profit may be subject to capital gains tax), or if<SPAN> have total trading or miscellaneous income (before expenses are deducted) of up to £1,000 and they meet the conditions to use the </SPAN><A href="https://www.litrg.org.uk/working/self-employment/trading-allowance" target="_blank" rel="noopener"><SPAN>Trading Allowance</SPAN></A><SPAN>.</SPAN></LI><LI><DIV class=""><DIV class=""><P>If you meet HMRC’s self assessment criteria for a particular tax year, you will need to file a tax return. It is also important to understand your legal obligations relating to self assessment to avoid penalties and interest.</P><P> </P><P>The trading allowance is a tax exemption that means you can make <STRONG>up to £1,000</STRONG> working for yourself each tax year without having to declare these earnings to HMRC. Working for yourself includes:</P><UL><LI><STRONG>Self-employment</STRONG> – for example, as a sole trader, freelancer or independent contractor;</LI><LI><STRONG>Casual work</STRONG> – for example, tutoring, pet sitting, gardening;</LI><LI><STRONG>'Side hustles'</STRONG> – including online content creation; and</LI><LI><STRONG>Selling goods online with the intention of making a profit</STRONG> – in other words, buying or making items specifically to sell them on (<STRONG>NOT just having a clear out)</STRONG>.</LI></UL><P>If you do any of these activities – or a combination of them – and you make more than £1,000 in total during the tax year, you'll need to file a self-assessment tax return (even if you made less than £1,000 from each one separately). When filing, you can either use the trading allowance to reduce your income by £1,000, or claim your <A href="https://www.moneysavingexpert.com/family/money-online-declare-tax/#claimexpenses" target="_blank" rel="noopener">actual business expenses</A> – whichever benefits you more.</P><P> </P><H3>When do you start paying tax?</H3><P><STRONG>In a nutshell</STRONG></P><UL><LI>Everyone in the UK can earn a certain amount per year tax free (£12,570 for 2023/24)</LI><LI>You need to let HMRC know if you exceed this amount (assuming you aren’t on PAYE)</LI><LI>If you become self-employed or set up a business you need to let HMRC know within 3 months (there’s a £100 fine if you don’t)</LI><LI>Class 4 National Insurance Contributions (NICs) start at 8% on all income over £12,570 (raised by £3,000 in 2022), for the self employed this falls to just 6%.</LI><LI>From April 2022, NICs will increase by 1.25 percentage points as part of the new <A href="https://www.bbc.com/news/uk-politics-58436009" target="_blank" rel="noopener">Health and Social Care Tax</A> <STRONG>(This has now been scrapped)</STRONG></LI><LI>Capital gains tax of 18% – 24% is payable on items worth more than £6,000, and over and above your £6,000 capital gains allowance<I> ( this  allowance is now £3000) </I></LI><LI>You can rent a room in your home tax free up to £7,500 per year</LI><LI>Additional income earned up to £3,000 can be taxed through PAYE</LI><LI>2nd jobs will be automatically taxed at 20% (BR tax code)</LI><LI>There’s a <A href="https://moneysavinganswers.com/personal/tax/new-digital-trading-allowance/" target="_blank" rel="noopener">new £1,000 trading allowance and £1,000 property allowance</A>introduced in Autumn 2017 and applied retrospectively from 2017/18</LI></UL><P> </P><DIV><DIV class=""><H3>Selling goods</H3></DIV></DIV><DIV class=""><DIV class=""><DIV class=""><DIV class=""><P><STRONG>Platforms covered:</STRONG> eBay, Etsy, Facebook Marketplace, Gumtree, Vinted and others.</P><P>When it comes to selling things, what matters is whether you acted with the intention of making a profit. This intention is the main factor in determining whether you're considered to be running a business ('trading') – and therefore whether you have to declare your extra income.</P><P>So really it comes down to what you sold and why:</P></DIV></DIV></DIV><DIV class=""><DIV class=""><DIV class=""><UL><LI><STRONG>If you made or bought items specifically to sell them on, this would likely be considered trading.</STRONG> If selling the goods has taken you over your £1,000 <A href="https://www.moneysavingexpert.com/family/money-online-declare-tax/#tradingallowance" target="_blank" rel="noopener">trading allowance</A> for the tax year, you'll need to tell HMRC by filing a <A href="https://www.moneysavingexpert.com/family/money-online-declare-tax/#declare" target="_blank" rel="noopener">self-assessment tax return</A>.</LI></UL></DIV></DIV></DIV><DIV class=""><DIV class=""><DIV class=""><UL><LI><STRONG>If you only sold unwanted items you already owned, it's usually not trading.</STRONG> In almost all cases, if you just flogged stuff you already had lying around, you don't need to tell HMRC or pay any tax on this.<BR /><BR />The one exception is if you sold a single item for £6,000 or more. Depending on what it was, you may need to tell HMRC and pay Capital Gains Tax (CGT). This may apply if you sold something that increased in value since you got it, such as jewellery, antiques and paintings.<BR /><BR />You can check whether you need to tell HMRC about the sale using its <A href="https://www.gov.uk/check-additional-income-tax" target="_blank" rel="noopener noreferrer">online tool</A>. For more detailed info about CGT, see the <A href="http://www.litrg.org.uk/savings-property/capital-gains-tax" target="_blank" rel="noopener noreferrer">LITRG's guide</A>.</LI></UL></DIV></DIV></DIV><DIV class=""><DIV class=""><DIV class=""><DIV class=""><DIV class=""><DIV class=""><P> </P></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></DIV></LI></OL><P><EM><SPAN class=""> People need to research for </SPAN>themselves, and if in doubt contact HMRC.</EM></P><P> </P> Tue, 25 Feb 2025 17:06:59 GMT vintique*violet 2025-02-25T17:06:59Z