Crazy and Mis-informed posts by private sellers re Fees

[jere-nott]

Oh Dear. I have read some posts by Private Sellers moaning about eBay Buyers Fees.

Some say they are leaving, some say this is the end of eBay or RIP eBay. What tosh.

eBay is a multi billion pound or $  Global Company. Some (not all) private sellers are so naive. 

eBay has good Customer Service and as long as you are open and honest with them they will treat you with respect and try and solve any issues. eBay (and PayPal) know every trick in the book and a few more too.

However, I sympathise with genuine Private Sellers but I have noticed that a lot of posts are from "Private Sellers" who, clearly, should be Business Sellers.

I am a 74 year old Pensioner selling by stamp collection which I have been collecting for over 60 years and have been a member for over 11 years. eBay contacted me and said that because of my volumes I should upgrade to a business seller, this was because I have bought stamps some I keep some that I don't want a list on eBay therefore by law I am a business seller. I complied - no problem.

I now pay a 36p listing fee and a FVF on sales, again not a problem for me.

Some Private Sellers have little or no business acumen, maybe they are worried about the consequences of upgrading re HMRC. Believe you me it is not all that scary. 

So Private Sellers take a step back and have a think and stop the posting hysteria. 

Just my opinion, always open to constructive criticism and discussion.

[goldenwolfman]

As I said 'IF available' - HMRC understand that in many cases receipts are not available. eg. It is possible to be a registered antique dealer, buying at boot sales, entering fees in a book that you paid for second hand goods and the IR will accept those figures.

I'm only covering my back, as my accountant of many years said. 'Better to have some figures to show than end up on the wrong end of an assessment that HMRC do arriving at their own figure - which is how long is a piece of string!! You may think keeping a record time consuming, but unless your selling on a vast scale - its minutes well spent.

My situation may help explain - I have been self employed since 1980, I have numerous friends who are accountants and I have run my own business employing people. So I do have some understanding of how these matters work. I STILL work and pay taxes making returns every January.

It's obvious that has we get older we (sadly) acquire so much stuff and we don't want most of it. Just like you, I've still got some of my mums stuff from 1985 - I gave lots to charity, lots sold but still have more - having recently inherited possibly 5000 FDC's and boxes of stamps which I don't want. I am entitled to sell my own items and do not have to pay tax on it - so better be safe than sorry - hence a record is kept !

[magpiecorner1]

Very very useful to keep records if you inherit something, as, when sold, capital gains tax is a tax on the difference between the price at the date of inheritance and the date of sale.  It is subject to inheritance tax before that and also if left to someone else.  Very important if it is sold for more than £3000.  Unless its a Ferrari or Rolex of course, they are exempt from CGT.

I laughed at your comment about entering fees in a book at collectors fairs and boot sales - I used to be a gold scrappie  licensed itinerant precious metals dealer, buying and selling at collectors fairs and car boots.  I've bought gold and silver from, among others,  Mr M Mouse and also his wife Minnie, Bill Shakespeare, Neil Armstrong, Barney Rubble and even JK Rowling.  Honestly, when our JK was drunk, as he often was at 7 in the morning, he couldn't string a sentence together!   HMRC were perfectly happy, the addresses were a bonus and most were genuine - a paper trail is a paper trail; the local licensing official insisted I check passports or driving licences if I didn't believe them (imagine, at a car boot!!!!), I had spent years at school with Will Smith Don Johnson and Robin Hood.  If Mrs Hood had enough chutzpah to call her son Robin who was I to question names? 

[6kitkat]

As a genuine private seller I walked away. Nothing listed from February. As a buyer I’ve not bought a single item this month as I’m not paying eBay 75p and 4%. No hysteria, no crocodile tears, I’ve just left the platform. 

I imagine less private sellers will equal less buyers, so less exposure and prices falling. Sad really, but what has had it’s time.

[sml192]

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@magpiecorner1 wrote:

Very very useful to keep records if you inherit something, as, when sold, capital gains tax is a tax on the difference between the price at the date of inheritance and the date of sale.  It is subject to inheritance tax before that and also if left to someone else.  Very important if it is sold for more than £3000.  Unless its a Ferrari or Rolex of course, they are exempt from CGT.

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The 'Annual exempt amount' is now £3,000 but the 'Chattel exemption' is still £6,000.

[andha-21]

@sml192 

The 'Annual exempt amount' is now £3,000 but the 'Chattel exemption' is still £6,000.

Do you know if it's an as well as or an instead of?

If I sell £6000 worth of Chattel do I still have the £3000 annual exempt amount to use as well?

[dch2112011]

I think you will find that the Chattel (movable tangible personal possessions) limit is one and the same £3000 for capital gains tax  - 

Without getting into the job of an accountant - there are chattels which are exempt under the wasting chattels rule ie items with a life expectancy less than 50 years , some if gifted are subject to current market values - there are many other twists to CGT  but anyone really wanting to know needs to talk to a tax advisor 

[sml192]

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@andha-21 wrote:

@sml192 

The 'Annual exempt amount' is now £3,000 but the 'Chattel exemption' is still £6,000.

Do you know if it's an as well as or an instead of?

If I sell £6000 worth of Chattel do I still have the £3000 annual exempt amount to use as well?

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It's a combination of both. 

The 'Chattel exemption' is the amount at which an item or set is considered a chargeable asset so applies to each item/set sold within the tax year. 

For each item/set sold for £6,000 or more you need to calculate the capital gain which is generally the sale amount less the original cost of the item and any allowable expenses (which can relate to both the sale and the original acquisition).

At the end of the tax year you then need to add up all the gains, deduct any allowable losses, and then deduct the 'Annual exempt amount' of £3,000 in order to arrive at the taxable amount.

[magpiecorner1]

"You are slightly misinformed. Hobby selling is selling your own items or gifts etc where you can make a profit up to £1000 p.a. After that the income is taxed and you are classed as a sole trader.

Capital Gains Tax is an entirely different matter

If you buy with the intention of reselling then you are a business it doesn't matter if you make a profit or a loss - you are trading."

Apologies, but I've never worked out how to include the post I am responding to - but I believe you are wrong.

Hobby selling is NOT selling your own items or gifts etc.  

If you are selling, giving away or disposing of  your own items or gift (chattels), there is NO profit element - you are merely realising an asset.  There is no limit to the amount of money, and it could be millions, that you can sell your items for.  There is no value where you become a sole trader you do not have to register for self employment

If you sell an item for more than the value when you received or bought it, its a taxable gain, also known as a capital gain- if you sell it for less, it is a capital loss.  The capital gain is the difference between the price paid - or the value if a gift - at the time it came into your possession and the selling price.  If this is before 1982, the market value at April 1982 is used.  Where the capital gain is more than £3000, the annual exemption amount, the capital gain is subject to Capital Gains Tax rules.

So Capital Gains Tax is most certainly not an entirely different matter.  It is an integral part of disposing of any asset.

Cars and some other items are exempt from CGT.

Other possessions that are not chattels.

Shares gains are dealt with a little differently - and CGT does not apply to ISAs

House sales gains are again treated differently - and apply to houses that are not main residences.

Of course, a fair bit more complicated than that, but that's the gist!

[sml192]

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@magpiecorner1 wrote:

Apologies, but I've never worked out how to include the post I am responding to - but I believe you are wrong.

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You just need to click/tap on the " symbol at the top of the reply box. 

[magpiecorner1]

Aw thanks! Been around for donkeys years and only worked out where to find the strike through button.  

[magpiecorner1]

I stand corrected, of course.  £6000.   As it matched the aea last year I think,  in my head, I pulled them both down by mistake.  Thanks for correcting me! 

[sml192]

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@magpiecorner1 wrote:

I stand corrected, of course.  £6000.   As it matched the aea last year I think,  in my head, I pulled them both down by mistake.  Thanks for correcting me! 

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Yes, they were both the same amount in the 2023/24 tax year which has definitely caused many people to make the same mistake.