03-01-2024 9:39 AM
I saw that HMRC will be clamping down on sellers who make more than £1,000 a year from selling on Ebay, Vinted, Depop etc
Do you think it is fair? Will anyone look into alternatives. Are there any?
10-01-2024 3:52 PM
That might not work if a seller does cash only collections and doesn't put the money into his/her bank account.
10-01-2024 3:58 PM - edited 10-01-2024 3:58 PM
Can see a new site opening up offering that as that would get around it. All main online selling platforms would lose sellers fees if they did that. Never did collect but think you still have to pay through ebay and get a code to show seller when you collect items
10-01-2024 4:12 PM - edited 10-01-2024 4:14 PM
@susapric-68 wrote:Can see a new site opening up offering that as that would get around it.
It wouldn't because as it would be a digital platform facilitating sales between it's users it would be obliged to register with HMRC and produce an annual report in exactly the same manner that eBay is now obliged to.
Besides, even cash on collection sales conducted via eBay will be reported to HMRC if the seller passes the threshold.
21-01-2024 2:36 PM
I sell on ebay and Vinted. Most is stuff I have worn or some with labels on not taken back. My friends give me their stuff to sell for them but not business where I would sell dozens of everything. I paid tax when purchased why should I pay tax now? Warehouses sell on here and from the business stores. I think it should be those that are looked into to not a person/s who sells £1.000 or just over a year. Been helping me with my gas.elec and mortgage
21-01-2024 3:05 PM
Pull the other one, it's got bells on!
You are quite clearly trading as a business on a private account. That's breaking consumer law, let alone what you are doing about your tax situation.
The tax you pay when you buy something is VAT, the tax you owe on these sales is income tax.
21-01-2024 3:05 PM
You fall, quite clearly, into the category of private seller. The only thing that might be taxable is if you get paid by your friends when you sell their stuff, but as that would be under £1k you will be safe.
There is a good article about this at https://www.accountingweb.co.uk/tax/personal-tax/side-hustle-tax-is-much-ado-about-nothing
It is quite a difficult read if you aren't into tax law, but there is a paragraph or two which seem to cover your circumstances.
22-01-2024 10:57 AM
Your friends charge you tax to take their items and sell them? That seems harsh of your friends, if I'm honest.
You should charge them extra for the use of your totally-not-bought-for-business-and-I-just-had-it-hanging-around mannequin that models their clothes to cover it.
Regards to the "warehouses sell on here and from the business stores" - yes, they do. And they pay income/corporation tax on their sales.
22-01-2024 12:50 PM
Did you go by what they posted or look at the listings for multiple new items that they are selling?
The two things don't go together.
22-01-2024 2:03 PM
I went by what they posted. Now I have seen your post I am having second thoughts.