income tax

[ptsh01]

I dont quite follow the income tax issue.   eBay say if I make more than £1740 in the year I have to pay tax, they also say if I sell more than 30 items I have to register for tax.  Question - If I sold 31 items at £1 each, Im well below the 1740, so just how does 30 items relate to £1740 ???

psh

[papso22]

Actually ebay says neither of those things, I have no idea where you have got that from.

The £1750 and/or 30 items are mutually exclusive reporting thresholds, nothing to do with tax actually being due.  Ebay reports your sales to HMRC if you exceed either of these.

For tax queries always go to the HMRC website.

[*vyolla*]

  This is incorrect. eBay don't offer tax advice, so I'm not sure where you're getting that from? 

eBay and the other online platforms have to pass data on to HMRC automatically if you're selling 30 or more items a year OR have total eBay sales over the equivalent of £1,740.

A private seller selling their own personal items such as bits and pieces from their wardrobe/loft/garage isn't subject to tax, you can check your status with HMRC's checker here:

https://www.gov.uk/check-additional-income-tax

Even though the above data is being shared, it doesn't mean that you will owe tax if you're a private seller.

@ptsh01

[ptsh01]

Thanks.  I had message from ebay to the effect that over £1740 becomes taxable, or over 30 items.  Now Im really struggling on just how they equate £1740 against 30 items...   As afore mentioned if I sell 31 items at £1 each, Im well below the 1740... I just don't get their thinking...

psh

[jckl1957]

As explained, there is a threshold at which Ebay will ask for your National Insurance Number and report your sales to HMRC.

The 30 items/£1740 limits are not set by Ebay and it is one or the other - sales will be reported if you sell one item for £2000 or 31 items at 99p.  Even then, you will probably not be liable to pay tax unless you are trading.

As you have sold more than 30 items this year, Ebay peobably now require your NI Number.

I think you must have mis-read the message from Ebay.

[*vyolla*]

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@ptsh01 wrote:

Thanks.  I had message from ebay to the effect that over £1740 becomes taxable, or over 30 items.  Now Im really struggling on just how they equate £1740 against 30 items...   As afore mentioned if I sell 31 items at £1 each, Im well below the 1740... I just don't get their thinking...

psh

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I'm pretty sure that the message didn't say that. 

You can copy and paste the main body of it here if you want (make sure that you leave out any personal info).