HMRC & Ebay Tax Returns

[leach1527]

Back in April I was contacted by HMRC who had obviously received my details from EBAY.

I was asked to complete a tax return for the previous four tax years. I duly did this and submitted my paperwork on 23 May. Since then I have heard nothing. 

I am wondering if anyone else has been through the same process but have actually had a response from HMRC and been presented with a bill. If so were you penalised for late submission of your tax returns. I am obviously concerned that they might slap on heavy penalties for late returns. I should add that my Ebay sales did exceed the £1000 threshold, but I am a private seller.

[papso22]

Surely as a private seller you had no tax liability to declare on your return so why are you expecting a bill?

Also as a private seller you have no obligation to complete a tax return and so there should be no penalties.

Didn't HMRC just ask you some questions first?

[leach1527]

Being a private seller is neither hear no there as far as HMRC is concerned. If you sold anything to make a profit and you exceed HMRC's allowance you are liable to pay tax on it.

[john1297576]

The magic word is “profit”. Private sellers are not expected to be selling for profit.

[papso22]

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@leach1527 wrote:

Being a private seller is neither hear no there as far as HMRC is concerned. If you sold anything to make a profit and you exceed HMRC's allowance you are liable to pay tax on it.

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If you are liable for income tax on sales made on ebay, then those sales should be on an ebay business account and you are not a 'private seller'.