EBay asking for national insurance number , I sell a lot but buy a lot hobby is collecting coins

[23mrf]

I’ve started collecting coins and I buy a large lot of coins take out what I want and then Sell what’s left over. Been doing this for 9 months, I am about £500 out of pocket from my initial outlay but am selling about £1000 in sales each month, will HMRC take into account that I am not taking out any money from my ebay account and realise it’s just a hobby or am I going to have to pay income tax on £12000 in sales? If so I may have to sell my collection to pay them!!!!

[moldosgifts]

A couple of things leap out to me.

Your trading as a business yet your registered on a private account,

It not a case of do i a have to pay tax 

Its case do i want to trade legally.

Supply your NIN or they will with hold your pay-outs.

It is a LEGAL requirement for EBAY to supply all these datils to HMRC.

[papso22]

If when you buy the large lots it is always your intention to take out what you want and sell the rest then I would say that is trading.  If you are trading then you need to make sure you meet your tax obligations, which may mean no tax is payable but you still have to register and file returns.

This sort of activity, i.e almost anything to do with collections, is complicated and it might be worth getting professional advice from an accountant.  If you have only been going 9 months then you have time to register and get it all straight.

[cassidy_r_private]

Buying to sell makes you a business.

Buying to sell at a loss by keeping the leftovers might make you a bad businessman, but doesn't stop you from being a business.

You may save fees having a business account and you'll certainly find it easier to set your price points.

When I started, like many people, one thing led to another and I ended up doing some relatively significant turnover and had to confess my sins before HMRC got me and helped me with the confession.

With the help of an accountant who knew what I could and couldn't claim allowances for, after three years of trading and a healthy surplus, my tax liability was precicely zero. This will be the case with many small sellers who are under the RADAR. The bonus was that moving forward I could sleep at night.

If you are shifting £1000 a month in what is a highly competitive environment, you clearly know your stuff. Embrace it, start accounting for your purchases/sales/profits and make some money doing something you obviously enjoy.

If you've made no profit, there will be no liability.

[arkwebus]

Adding to what is said previously do please remember that you pay only on your "profit".  

So [simply] if you sold £12000 but the cost was £11000 you would be liable for tax on just £1000 which would presumably be added to you self-assessment tax return.  

You would need to draw up a simple set of accounts to convince HMRC whether or not there is tax to pay. 

@23mrf 

[game_raid]

There is other factors to consider, if they are currently employed they may have used up their yearly allowance, the OP hasn't said if they are currently working as well as selling on eBay.

As others have said, you need to get some professional advice if this is all new to you.

[cassidy_r_private]

Please bear in mind that it is not illegal (or immoral) to make money. It's something that should be celebrated.

[jofo_441]

Hi.

I'm also really worried about this. Me and the wife have been collecting stuff for years but now having a child we need to shift alot of it. We also use the sales to buy new stuff, days out as all our job money goes on bills. Don't want to be stung on selling my own stuff ya know that I brought at full price.

[jckl1957]

Has Ebay requested your NI Number?

If you sold more than 30 items last year, Ebay will report your sales  (January to December) to HMRC.

However, if you are selling your own, unwanted items, you do not have to pay tax when you sell them.  HMRC are going to be overwhelmed with information from the online selling platforms.  I doubt that they will contact everybody whose details they receive.

If you look at the 'badges of trade' HMRC use, the first one asks if you bought with an 'intention to make profit'.  If you don't buy in order to sell on, even if HMRC contact you, it is unlikely they will feel you need to pay any tax.

[jofo_441]

Hi.

Yeah they asked for my NI number yesterday. Yeah everything i sell is my own as I kinda a hoarder 😂 pretty much everything is sold at a loss from what I paid for it