when's a profit not a profit

[studs1953]

Since retirement I have a hobby doing jigsaws.  I, along with some family and friends swap completed jigsaws. When we have all done them I sell them on Ebay. We source them from local car boot sales. we have a budget and refuse to pay more than £2.50 for one.  Not all jigsaws are complete ( about 15% ) .  With the money received on Ebay we purchase more jigsaws. With the amount I am selling on Ebay I am exceeding the £1000 threshold. Obviously it is hard to get receipts from car boot traders. With the cost of packaging and fuel etc we are running at a loss.  I try to sell them by auction on Ebay and after p&p  a lot make a loss. I am worried that the powers that be would consider me a trader.  Selling via Ebay enables my friends and me to have a cheap hobby.

[plpmr]

"With the cost of packaging and fuel etc we are running at a loss."

As a private seller profit/loss cannot come into it.

[61stephenuk]

You would have to discuss any tax issues with HMRC , eBay will report your sales as you have exceeded the 30 item sold limit