Are your taxes in order? eBay now sending sales data to HMRC

[myriad*seller]

From 1st January 2024 eBay will be legally required to give all sales data to HMRC, so business sellers not paying taxes and/or masquerading as private sellers on eBay will soon be a thing of the past

Plus it will be interesting for all the sellers that now have to declare previous years turnover and pay back taxes and penalties...

This isn't the usual "HMRC are clamping down on sellers" line they use to scare people (but never actually do anything), this is a whole new digital computer system and reporting system that eBay are legally obliged to do from now on, to send all sales details for all sellers to HMRC so they can ensure people are paying taxes on their "side hustles".

It will also apply to other self employed roles such as delivery drivers and people who rent out via AirBNB and similar platforms, all their income will be declared to HMRC who will want those figures to match the taxpayers tax return. 

There will be a lot of worried eBay sellers now.... who've been trading illegally for years, with the feedback history to match, and who have pretended to be "private sellers" until now... 

https://www.thisismoney.co.uk/money/bills/article-12640869/Is-taxman-coming-hustle-Airbnb-Ebay-Uber-...

[honeyvintagecurios]

Yes, that's what I have been saying

[kath3735_wxmjn]

probably about as much as we trust what some commentors have to say!

[kath3735_wxmjn]

then get in touch with HMRC then instead of scaremongering and second guessing on here!  

[kath3735_wxmjn]

or maybe they actually know more about the subject than you clearly do?   They certainly have far more experience on the site.  Not sure why you are even bothering commenting if you are not willing to listen and take on board what everyone else has to say.  I come on these threads to seek information, read all views, make up my mind and if i need or want further advice would look it up in other areas.

[papso22]

HMRC had been doing what are called 'one to many' campaigns for years.

When they do those,  the first stage is a letter and a form, asking you about the sales information HMRC has obtained which they have compared to any self assessment that has been submitted.

A satisfactory explanation will mean that is the end of it.  If HMRC decides, or the individual confirms, that it is trading income, then they might ask for a self assessment form to be completed, or they might issue a determination of the tax due.

Self assessment will not be the first thing that happens, either in past campaigns or whatever HMRC does as a result of the data they will get in 2025.  Self assessment is to arrive at tax due on business transactions, they won't want thousands of SA. returns from sellers selling off their old personal possessions. 

If someone does ask HMRC I am sure they will simply be pointed at the published guidance on gov.uk.   

They will not be interested in decluttering and will look for people selling multiple new items, or possibly more antiques than someone might reasonably be expected to own privately. 

They will go for what looks like obvious trading with high values.   They resource according to risk.

[kath3735_wxmjn]

but your comments can also be regarded as 'arrogant' because you are positive that you are right and seem to not be willing to accept that others may have a different and genuine viewpoint.  I am a private seller and if i want clarity i will go to the HMRC and see what my position would be.  Why do you just not do that, rather than attacking e bay who probably in all truth have no idea what HMRC will be doing.  All they are required to do is send certain information to them once a year, surely the rest is up to us?

[honeyvintagecurios]

Again your comments are misleading and incorrect. HMRC have introduced new rules for online selling which is nothing to do with previous campaigns!

[*vyolla*]

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@honeyvintagecurios 

Best way to put yourself out of your misery is to contact HMRC and ask them how they'll tell the difference between a private seller who is decluttering and a private seller who buys items from boot fairs to re-sell.

It would be great if you could pop back and let us know what they say to you. 

[papso22]

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@honeyvintagecurios wrote:

Again your comments are misleading and incorrect. HMRC have introduced new rules for online selling which is nothing to do with previous campaigns!

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No they haven't introduced any new rules at all.

The only new thing is a law that requires the 38 countries that signed up to it, to require online market places to report sales data to them

That's sales data that HMRC has received from ebay on a voluntary basis for years, and which resulted in exactly the sort of campaign that I described to you.  

HMRC will simply have more data than before,  their method of dealing with it doesn't need to change.

By the way, I am a member of the Chartered Institute of Taxation,  I do know what I am talking about.

[honeyvintagecurios]

More misleading information, when are you going to stop giving out tax advice which is incorrect!!!

[honeyvintagecurios]

They are rule's as taken from gov.uk website

You keep spreading misleading info, hopefully people are not taking any notice. And will be careful to limit their sales accordingly!

From 1 January 2024, digital platforms are required to collect and report seller information and income to HMRC . These digital platforms must report sellers' income by January 2025. The changes are an internationally agreed set of rules requiring digital platforms to report certain information to HMRC .

[tommystrezures]

For F  S, There is a distinct difference between giving out tax advice and laying out a statement of facts, what planet are you on?

@papso22  has taken time to lay out the facts and has not given any tax advice whatsoever. 

So please stop this misinformation and scare mongering, it is getting irksome and quite frankly boring.

[the_book_seekers]

@papso22 mentioned 'By the way, I am a member of the Chartered Institute of Taxation' - do you have beter credentials in this field?

[papso22]

For the last time  it's a reporting requirement as a result of an international agreement bought into statute by way of regulations.

HMRC did not bring it in, they just get the data,  as do the tax authorities in the other 37 countries, that signed up.  The tax rules, ie what is liable to tax and what is not, have not changed.

You are making yourself look very silly.

Why don't you just get on with spreading your sales over two accounts, for all the good it will do you?

[adey0070]

Nice one papso, you're more help than people who call themselves helpers!

[keeptheroof]

Well that would be great, wouldn't it. I just fit in the age where they can push mine back and now they want to tax it AGAIN. Don't forget you can add £1,000 to the tax threshold for profit on personal trading.

[the_book_seekers]

Don't forget you can add £1,000 to the tax threshold for profit on personal trading.

I'm afraid you can't. There isn't a £1,000 allowance for personal trading. Business sellers do have a £1,000 limit. If total sales for a year is below £1,000 then a self assessment won't be required. 

[vinylscot]

This is precisely why the thread must be locked now. This is basic stuff, covered at the beginning of the thread (and other threads) and covered and fully explained many many times since. And yet people are still posting obviously wrong information.

All the thread is now attracting is the ill-informed, the scaremongers, and the trouble-makers. Nobody is reading the whole thread, which is understandable, as it is almost 900 posts long.

The answers are all in the thread. People can scan through the thread to find relaible responses, and disregard the nonsense. They can still look through the thread after it's been locked; you're just making it harder for anyone to find the reliable info, as more and more nonsense accumulates, the longer you allow it to rumble on.

So come on Marco@ebay How about doing us all a favour, and finally locking the thread?

[tommystrezures]

dave@ebay 

katie@ebay 

To the Mods who are also no doubt keeping an eye on things, please read post 898 and numerous others requesting this thread be locked.

[the_book_seekers]

The trouble is if this is closed another thread will be opened and we'll go through it all again.