If the collector only did this once, then HMRC would be unlikely to force an assessment because that collector could reasonably deduct all sorts of costs such as a percentage of house rent, mobile phone etc. But if the evidence says otherwise eg a google maps business listing, they sell over a long period of time, the amounts involved are substantial, they have a website etc etc, then I think HMRC are much more likely to see this as a business and send an assessment for the last 7 years of trading if that person has been trading that long.
The process would be that HMRC will estimate how much that person has made and send a bill. This estimate will be derived form all sources of income - so for example if they also have a job or claim benefits. The collector in question would simply provide the one off invoice for the job lot and probably a total of how much they sold it for on eBay and deduct their costs. This would stop any further action from HMRC. But if they had bought more than one job lot, and consistently made a profit, then it is and should be classed as a business.
Another example of a mistake that a lot of people make is where you say to HMRC that you are self employed and raise an invoice each month against someone, for work you have done. If that invoice is dated regularly such as weekly or monthly, or for the same amount, HMRC classes that as a salary or a wage and not self employed. If you are caught doing that, you can be open to a large NI and/or PAYE assessment.
jBQw8yPVRi!~~60_7.JPG "lucy_farmer"){kind=avatar}
