Ebay holding my money ransom

[pvmr1980]

Posted again as answer incomplete.

I have never sold on Ebay until this year. As we are downsizing, I have been selling old items from our loft which we have owned for years or been left by family who have since deceased. These items were purchased with money earnt whilst working and vat paid on the original purchase. Over the year, I have sold just over £1000 which is much needed towards household costs, but due to rules by Ebay on reporting "taxable income", my money (£27) is not being released unless I give my NI Number. I totally object to Ebay policing my account on behalf of HMRC and I'm sure blackmailing a client is unethical and potentially illegal. I understand the need for ensuring a business is taxed, but for a 70 year old clearing stuff out this is appalling. 

The answer I received just directed me to policy.

It did not answer: Why did ebay allow me to continue to sell items knowing it was not going to pay the proceeds from my sale to me; holding them ransom?  If the policy is 30 items, then simply prevent sales over that. 

[jckl1957]

To answer your question: Ebay did not know that you would be reluctant to share your NI Number with them.  This is the reason they are currently witholding a payment to you.  If you give then the information they have asked for, they will release your funds. 

Ebay has a legal obligation to report your sales and provide your details to HMRC.

Ebay did not set the 30 items limit.

This new legislation was widely publicised from the start of this year.  Even if Ebay does not have your NI Number, they still have to provide the details they hold about you to HMRC - not Ebay's decision but new legislation:

'The Platform Operators (Due Diligence and Reporting Requirements) Regulations 2023'

[papso22]

Just to add, I imagine there will be a special list of people who refuse to provide their NINO and they might just get special treatment from HMRC. 

[61stephenuk]

Online marketplaces face a penalty of up to £100 for each inaccurate, incomplete, or unverified seller’s record,no doubt this would be passed on to a seller who refused to give the information required.

[pvmr1980]

Thanks for the reply. eBay did know that I would not supply the NI number. They telephoned and I advised them I am not prepared to give it. They still allowed sales and therefore funds being held for sold items after being advised to force me to comply i.e. a ransom. 

[papso22]

It was your choice to continue selling knowing you were not going to provide legally required information. 

[jckl1957]

In your previous post from 22nd December, I sent you a link to this information which has been available since the beginning of this year.

https://www.ebay.co.uk/help/account/regulatory/sales-reporting/uk-digital-sales-reporting?id=5454

It clearly states what information you will be asked to supply and states, in a highlighted box, 'If you are required to do so but don't provide the requisite information, your account may be subject to payout holds or selling blocks.'

When you made the choice to start selling on the site, it was up to you to investigate all of the terms and conditions your account and monies could be subject to.

[themidnightcaller]

Is giving up you're NI number worth £27 ?   If not, just walk away..

[myriad*seller]

Sharing your NI number with eBay is a LEGAL requirement from UK Government, eBay cannot change the law for you. Nobody is special, the law applies equally to everyone. 

Everyone who sells over the limit are required by LAW to give this information to the website they sell on

There are simply no exceptions. 

[myriad*seller]

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@pvmr1980 wrote:

Thanks for the reply. eBay did know that I would not supply the NI number. They telephoned and I advised them I am not prepared to give it. They still allowed sales and therefore funds being held for sold items after being advised to force me to comply i.e. a ransom. 

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Please don't be a drama queen, this is LEGISLATION, the law, and you must comply

You are not special, you are a taxpayer like everyone else.

Either provide your NI number as legally required to do so, or you will have to stop selling on eBay and lose your selling funds.

HMRC may contact you anyway, via your name and address, so you won't evade them, and if you have no tax to pay what is the issue? 

[vintique*violet]

I share your thoughts as once a private National Insurance number which was only privy to yourself, HMRC and your employer and told to keep private and not to share,  it appears that Government Legislation ( which is not Law) has been used to " move goalposts" yet again and is being held over all digital platforms such as eBay,  and if they do not report it is they who will be " sanctioned" in forms of fines!

It is a long handed whip to comply on many levels.

So you either comply or don't the choice is yours, however " coercion" the withholding that which is rightfully yours is tyrannical and dictatorial and supposedly outlawed in the UK from many centuries ago. 

Welcome to the "Build Back Better"  - which is not for us mere mortals, but the " gov/corporate/ shareholder,  stakes in " cahoots" together... soon to surround us all with the net zero, carbon footprint, social credit score, 15 minute cities and more... Please people do your " due diligence" and research. 

[papso22]

'Government legislation' is the very definition of law!

[vintique*violet]

Hi no it is just legislation -  policies... research deeper into Law and the true meaning. 

[pvmr1980]

I am selling personal items that I have paid purchase tax on and income tax
on the money used to buy them in the first place, so I am damned if I am
paying tax again. The issue is eBay holding my funds ransom. eBay should
block sales who don't comply, I don't have an issue if the do this. Pity
your brain can't see other perspectives. Merry Christmas

[arkwebus]

If you are - as you say - simply selling items that you have had for years then when asked on your self assessment tax form for your profits from "self employment" [etc] you will simply say "NIL".  There will thus be no tax to pay.   If HMRC does not think that is correct then they will carry out some form of investigation [though for normal individual sales I would very much doubt they will have the resources].  Do please also remember that if you were to be selling things "commercially" then tax is payable [potentially] only on your profits not on the sale value.

@pvmr1980 

[myriad*seller]

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@pvmr1980 wrote:
I am selling personal items that I have paid purchase tax on and income tax
on the money used to buy them in the first place, so I am damned if I am
paying tax again. The issue is eBay holding my funds ransom. eBay should
block sales who don't comply, I don't have an issue if the do this. Pity
your brain can't see other perspectives. Merry Christmas

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So you won't owe any tax then, and you can prove that, so why the issue with giving eBay (or any other website you will sell on in future) your NI number? You need to give it to them to prove you owe zero tax. 

All online selling sites require you to provide your NI number. It's the law. Nothing to do with eBay. I am sure they would rather not spent huge amounts of money on new staff and computer systems to comply with legislation, but they are forced to by law, as are you.

If you don't comply with the law, they will keep your funds and prevent you from selling until you do. The same will apply on all selling websites. 

HMRC may look extra closely at sellers who refuse to comply with the law. eBay can still give them your name and address and bank account details. 

[ile136yz]

Speak to eBay's Customer Services if the money you have made from selling personal items this year is under eBays reportable amount to the HMRC.  Get a copy of the conversation.

Also contact HMRC to explain the situation you are dealing with eBay (to try & stop any fines being issued).

[craft-modelling-supply]

Totally agree with your post. The 'helpful' replies on here completely miss the point made by the OP. Nowhere in the new legislation does it allow or mandate the digital platform to withhold monies belonging to the seller. That is the job of the HMRC should they be bothered to get involved. It is indeed coercion on the part of eBay. Im not sure that ebay are altogether on the right side of the law either...... Looks like car boot sales are going to rise in popularity! 

[papso22]

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@craft-modelling-supply wrote:

Totally agree with your post. The 'helpful' replies on here completely miss the point made by the OP. Nowhere in the new legislation does it allow or mandate the digital platform to withhold monies belonging to the seller. That is the job of the HMRC should they be bothered to get involved. It is indeed coercion on the part of eBay. Im not sure that ebay are altogether on the right side of the law either...... Looks like car boot sales are going to rise in popularity! 

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What about if the ebay user agreement allows them to do it?

[craft-modelling-supply]

Irrespective of what it says in the agreement, eBay is withholding money that doesn't belong to them in exchange for information. Other well meaning posters in this thread also don't seem to understand the new legislation. It is eBay, not the individual seller that is liable for a fine (from HMRC) for not providing the information. As a result, eBay are unlawfully withholding monies belonging to an individual, to force or bully them into providing said information.  That is definitely coercion, and I would say, against the law. 
As stated by someone in an earlier post, you should do some homework on the differences between legislation and UK law.