Buyer Protection Fee and new Tax Arrangements

[kh-216319]

Ebay are clearly aggressively pushing prvate sellers to switch to business status or drop out altogether. Is this linked to the new tax liability changes? (Private sellers are allowed to sell approx. £1700 per annum).

[cbclassicbuyer]

There are no new tax liabilities for private sellers. The only thing that has changed is that Ebay, and all other sales platforms, now have to submit details to HMRC of those that do go over the £1700 limit or sell more than 30 items per annum. 

[kh-216319]

Of course there will be tax implications or liabilities for private sellers who go wildy over the new limit.

[cbclassicbuyer]

Thats between the seller and HMRC, it has nothing to do with Ebay. 

[kh-216319]

I'm thinking ebay are anxious to stay out of any disputes or requests for documentation. They don't want to get sucked in.

[wakesweek]

A crucial factor is what it is that the private seller is selling

[jckl1957 · Accepted solution]

You seem confused by the new rule.

If a seller sells more than 30 items, or items over the value of about £1700 in a year, Ebay now has to report those sales to HMRC.

Any seller could easily sell 30+ items over the course of a year and be a genuine private seller.

If every item sold for £5, their sales would be under £200 but Ebay would still have to report their sales.

There is no way in the world that Ebay (or HMRC) would suggest that anybody selling a £5 item every week or so needs to upgrade to a business seller.