Do I need to submit a self assessment tax return to HMRC?

[bluerockrecords]

Hello. I earn over the £1000 tax free allowance and it would be clear for me to send a tax return if I had a job that would push me over the £12570 tax free allowance limit. However, I do not earn close to the £12570 tax free allowance as I currently only work part time and money earnt on eBay is way under. Do I still need to send a self assessment tax return or will I be notified when I need to send a tax return? Thanks 

[sml192]

If you are only selling unwanted personal possessions then you don't need to register for self assessment.  If you are buying or making items to sell and your sales for the year are greater than £1,000 (turnover not profit) then you would need to register for self assessment and also upgrade your eBay account to a business.

Please note that once your sales for the year reach 30 items or 2,000 euros (approximately £1,700)  they will be automatically reported to HMRC, who will then assess whether you should be paying tax or not.   It is your responsibility though to register for self assessment if applicable. 

[nigel_paul_wright7557]

If you dont send in a tax return and HMRC see you are trading on ebay they might get in touch with you.

In 2025 ebay has to send details of all sellers on ebay to HMRC.

[papso22]

You sound very  much like you are trading in records.  To do that legally you must do it from an ebay business account and register for self assessment.   You have already missed this year's deadline. 

[messier44000]

Not sure of your situation.

But with being part time, if claiming any type of credits (UC for exapmple) 

I would delare any extra earnings to them. 

[*vyolla*]

Personally, I'd say that a quick glance at your account does give the impression that you may be trading (not just selling off your own collection), plus your eBay ID looks like a kind of trading name. But, only you know if you are buying records to resell or have just spent years selling off your own personal collection.

You may receive a nudge letter from HMRC asking you about this, you may not. Nobody here can tell you what HMRC will do with the sales information they receive.

[ett1954]

To add to what @*vyolla* has said, the fact you are also purchasing records on this account would suggest to HMRC that you are probably trading.

The fact you earn under £12,750 is irrelevant; if you are trading and your income (not profit) is more than £1,000 then by law you have to register with HMRC for self assessment as income above £1,000 has to be declared.  HMRC will then, by means of your self assessment, determine, after all factors and circumstances are considered, whether any tax is due on any profit you make.

[moldosgifts]

As a trader in second hand goods you will need to register as a business, Better to do it yourself rather than ebay force you.

The tax free allowance is HMRC point at which you must register with them.

ebays reporting allowance is 30 sales and or £1700 turnover NOT profit

As you have a wage for tax puposes wages are added to profit NOT turnover.

Turnover = total of sales including postage

Profit = Turnover less any and all expenses

Thats the basics anyway

[bluerockrecords]

Hello. Thanks for your replies. I have registered for Self Assessment. 

[dch2112011]

If your return shows your total income as less than your annual allowance - the likelihood is that HMRC will tell you that you need not fill in further returns until your circumstances change - not guaranteed but usual practice for HMRC - they have no interest in wasting time on someone who is unlikely to pay tax - your registration remains  valid - you can submit returns to pay voluntary NI contributions - which is handy for pension eligibility  when the time comes

[runninginlane4]

I find the taxation for private sellers selling their own items confusing. I understand that eBay will be sending data on all sellers that sell more than 30 items or value is over £1000. Not sure how HMRC can use this data for private sellers though. My understanding is if selling your own items then they are subject to Capital Gains Tax and not Income Tax and the CGT threshold is a £6000 gain (not sale value). I know it is not HMRC that are asking for this data to be sent to them so it wouldn't surprise me if they didn't pay too much attention to the private seller data.

[papso22]

The £ limit is actually about £1,700, depending on the Euro exchange rate at the time.

HMRC won't care about the type of account the person has used on ebay.  Although they may look harder at ones that have traded on a business account, a 'private account with many sales of new items, or whatever ticks HMRC's boxes, will be picked up.

They will not be interested in genuine private sellers, but may well be interested in certain 'private accounts'. 

HMRC are asking for the data because an EU regulation the UK signed up to said they would.

[runninginlane4]

---

HMRC are asking for the data because an EU regulation the UK signed up to said they would.

---

 It is not an HMRC initiative nor is it an EU regulation. It is an Organisation of Economic Co-operation and Development (OECD) regulation which now includes the USA and Canada.

[*vyolla*]

---

@runninginlane4 wrote:

 My understanding is if selling your own items then they are subject to Capital Gains Tax and not Income Tax and the CGT threshold is a £6000 gain (not sale value). I know it is not HMRC that are asking for this data to be sent to them so it wouldn't surprise me if they didn't pay too much attention to the private seller data.

---

CGT is currently £3,000, but is only applicable if you sell one item (or a whole collection) for over £3,000. 

[papso22]

---

@runninginlane4 wrote:

---

HMRC are asking for the data because an EU regulation the UK signed up to said they would.

---

 It is not an HMRC initiative nor is it an EU regulation. It is an Organisation of Economic Co-operation and Development (OECD) regulation which now includes the USA and Canada.

---

Fair enough but you said HMRC were not asking for the data and they clearly are.

[runninginlane4]

---

@papso22 wrote:

---

@runninginlane4 wrote:

---

HMRC are asking for the data because an EU regulation the UK signed up to said they would.

---

 It is not an HMRC initiative nor is it an EU regulation. It is an Organisation of Economic Co-operation and Development (OECD) regulation which now includes the USA and Canada.

---

Fair enough but you said HMRC were not asking for the data and they clearly are.

---

No, what is clear is that the OECD have said eBay and other online selling platforms operating in the UK must provide HMRC with the data.

[runninginlane4]

---

@*vyolla* wrote:

---

@runninginlane4 wrote:

 My understanding is if selling your own items then they are subject to Capital Gains Tax and not Income Tax and the CGT threshold is a £6000 gain (not sale value). I know it is not HMRC that are asking for this data to be sent to them so it wouldn't surprise me if they didn't pay too much attention to the private seller data.

---

CGT is currently £3,000, but is only applicable if you sell one item (or a whole collection) for over £3,000. 

---

You are right. Didn't realise it had been halved this year.

[4_bathrooms]

---

@runninginlane4 wrote:

My understanding is if selling your own items then they are subject to Capital Gains Tax and not Income Tax and the CGT threshold is a £6000 gain (not sale value). 

---

As mentioned the threshold is now £3,000 but that is the sale value. It is the gain that is taxed - if you purchased something for £2,500 (regardless when) and sold it for £4,000 your gain would be £1,500 which is the figure you would be taxed on. You do not have to make a gain of £3,000 for CGT to apply; it applies if you sell an item or collection (that isn't mechanical) for £3,000 or more.

[runninginlane4]

---

@4_bathrooms wrote:

---

@runninginlane4 wrote:

My understanding is if selling your own items then they are subject to Capital Gains Tax and not Income Tax and the CGT threshold is a £6000 gain (not sale value). 

---

As mentioned the threshold is now £3,000 but that is the sale value. It is the gain that is taxed - if you purchased something for £2,500 (regardless when) and sold it for £4,000 your gain would be £1,500 which is the figure you would be taxed on. You do not have to make a gain of £3,000 for CGT to apply; it applies if you sell an item or collection (that isn't mechanical) for £3,000 or more.

---

Yes, the threshold was reduced to £3,000 for this tax year. That £3,000 threshold is on the gain (sale price minus purchase price) and not, as you said, the sale value.  In your example, the £1,500 gain would not be taxable as it is under the £3,000 threshold. You seem to be suggesting that CGT would be payable just because the sale price is over £3,000 and that is not the case.

Found this CGT calculator

Capital Gains Tax Calculator | UK Tax Calculators

[4_bathrooms]

---

@runninginlane4 wrote:

---

---

Yes, the threshold was reduced to £3,000 for this tax year. That £3,000 threshold is on the gain (sale price minus purchase price) and not, as you said, the sale value. 

---

From GOV.UK (which hasn't been updated):

"You may have to pay Capital Gains Tax if you make a profit (‘gain’) when you sell (or ‘dispose of’) a personal possession for £6,000 or more."

I'm guessing they forgot to update that page with the General Election and everything.