Hi all, I'm wandering if someone could provide me some clarification regarding selling on eBay while claiming benefits. I am currently in receipt of ESA and PiP due to quite severe reoccurring mental health issues. A couple of years ago I began selling gaming PC's on eBay not as a business but more as a hobby. On average I would say I sell roughly one a month. There is a two fold reason I sell gaming PC's, 1. it gives me something to do that interests me - I really enjoy buying the components and assembling them to make a good machine. 2. It means I always have a relatively up-to-date machine to use. I don't usually make profit, most of the time I break even and occasionally I lose a little, but since it is a hobby I don't mind losing a small amount as most hobbies cost money.
After my most recent sale eBay messaged me to tell that I'd reached the threshold and in order to continue selling I would need to add my National insurance number to my account as they are now obliged to inform HMRC of people who are selling and who may potentially be liable for tax. While this makes sense in some ways as I am sure there are many out there who are listed as private sellers yet making business type profits.
I am not making any wage from this, and if I do make a small amount of money from a sale it pretty much goes into either an upgrade on the next machine or covers the costs of packaging - which for shipping PC's can become quite pricey.
While the revenue generated from selling a PC may look high, the profit is more or less non-existent. Should I continue to sell? or should I inform the tax office about my hobby and see what their stance is on the matter? If the latter is what I ought to do, does anyone know whom I'd need to reach out to for information?
It would be a shame if I had to stop selling PC's as building them is often one things that keeps me from losing the plot, as tedious as it may seem to many people I find it quite therapeutic.
Thanks in advance
James
