EBay it’s the end for private sellers.

[baddie74]

Well finally after changing the format of their selling platform it seems every couple of weeks you have come up with the ultimate level of stupidity with this latest total ridiculous set of changes. Nobody is going to wait what could be weeks to be paid for a item they have sold who ever dreamt up this idea much be so far from reality as needing to push every part time seller off the site. I knew when they came up with the idea of free selling it wouldn’t be long before the idiots that run eBay came up with totally and ridiculous idea to claw back the money they have lost the whole senior management team at EBay must seat round a table all wearing clown costumes saying what is the most stupid idea we can come with to really get rid of half of our customers and the biggest clown wins with this idea and all the other yes people follow. Well I had started selling a few bits again but never again and will not be using EBay again to sell anything it has become a total joke of a company I hope your poor and flawed decisions finally catch up with this once great place to buy and sell has become a total joke.

[vintique*violet]

Seller reporting requirements

• Income reporting: Sellers who make over £1,000 per year must register as self-employed and file a tax return 
  If TRADING as a business/buying  & selling/ making things to sell... to make profit ... this is not applicable for selling personal items. 

[henley-theatre-services]

Hi yes it does apply to private sellers, it now states private sellers can sell a few personal items. They are calling it the side hustle now, of course its got a name

Learn more

Yes, private sellers on eBay may need to pay tax on their sales, depending on their earnings and the items they sell. 

Income tax

• If you earn more than £1,000 per year from selling on eBay, you may need to register for Self-Assessment and pay income tax. 

[buffster1963]

Private sellers are selling personal belongings they no longer need. They do not have earnings and do not pay tax. I think you are confusing private sellers with the many unregistered business sellers pretending to be private sellers. 

[4_bathrooms]

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@henley-theatre-services wrote:

Income tax

• If you earn more than £1,000 per year from selling on eBay, you may need to register for Self-Assessment and pay income tax. 

---

That only applies if the income was earned as the result of trading (self-employment); this means making, growing or buying items with the sole intention of selling them. That is why it is called the trading allowance.

Selling unwanted personal belongings is not trading and does not require the seller to complete a self-assessment even if they sell more than £1,000 worth of personal belongings in a calendar year. Do you really believe someone who sells their car for more than £1,000 is obliged to complete a self-assessment tax return as a result?

[henley-theatre-services]

I think you are missing the point this applies to everyone and ebay are now obliged to forward to HMRC anyone who sells more than £1,000 worth of items.

A simple google search will show these relatively new results 

Yes, private sellers on eBay can technically sell more than £1,000, but if their total sales exceed a certain threshold (usually considered to be around £1,000 per year), they are legally required to register as self-employed and report their income to HMRC due to tax regulations, even if they consider themselves "private sellers.". 

Key points to remember:

• No specific selling limit:

  eBay does not have a set limit on how much a private seller can sell in terms of total value. 
• Tax implications:

  If your total sales on eBay exceed a certain amount (usually around £1,000 per year), you are considered to be trading and need to register with HMRC as self-employed. 
• Reporting to HMRC:

  eBay may report your selling activity to HMRC if you reach a significant sales threshold. 

[4_bathrooms]

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@henley-theatre-services wrote:

I think you are missing the point this applies to everyone and ebay are now obliged to forward to HMRC anyone who sells more than £1,000 worth of items.

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You are confusing the trading allowance with the OECD's digital sales reporting thresholds. eBay is obliged to report a seller's sales to HMRC and request a tax identification number (NINO, UTR or CRN) once a seller has sold 30 items or more than ~£1,700 in a calendar year. Those thresholds have absolutely nothing to do with anyone's tax liability nor do they affect anyone's tax position.  

[papso22]

Google is definitely not the go to place for advice on business activities and tax responsibilities.  You haven't even referenced your source in your part quotes.

The real source is the law and associated regulations, many of which have been correctly explained to you on this thread.

[vintique*violet]

Do you have a link for the information quoted?

• If you earn more than £1,000 per year from selling on eBay, you may need to register for Self-Assessment and pay income tax
•  
• May being the operative word here...and further research shows that information regarding " ebay or other online sales  shows information  that may require a self assessment tax return...ie. a declaration of income.  Remember there is also the  tax free allowance of £12570 per year. 

@henley-theatre-services 

Below is some further information sourced to assist... 

• If you are running a business with a view to making a profit, then that is considered trading income. In the context of selling goods, this may include buying in items to resell or making/improving things specifically to sell on for a profit. There are a number of indicators of trading which HMRC use, these are called ‘badges of trade’ and include the intention to make a profit and are explained in more detail on GOV.UK.
• If you receive income on a more casual basis this is sometimes called miscellaneous income. For example, this might include income from a hobby. This activity might not meet the ‘badges of trade’, but is still relevant for income tax.
• If you are selling unwanted personal possessions such as old toys or clothes, this would not be classed as trading or miscellaneous income, and there is usually no tax to pay. In some circumstances there may be capital gains tax when selling valuable items such as jewellery, this is covered in our flowchart.

The new online selling reporting " rule" is to garner more visibility from online selling platforms for HMRC ( i.e income/tax purposes).  Each circumstance is individual and need to research for themselves... or give HMRC a call for help...Self employment and self assessment are two different things... the specific criteria for such is laid out on the Gov website. There is no new tax and 

selling unwanted personal items as a " private seller" is not subjected to the HMRC £1000 trading allowance, as there is no trading nor business activities, however they may be subject to Capital Gains Tax if of high value and a profit has been made. Some come under miscellaneous income ( this could be a hobby seller) or trade income if  "conditions" are met to use the trading allowance. 

1. The main exceptions are if someone is not trading, for example, they are selling their own unwanted personal items (note, however, that some high value personal items sold for a profit may be subject to capital gains tax), or if have total trading or miscellaneous income (before expenses are deducted) of up to £1,000 and they meet the conditions to use the Trading Allowance.

2. If you meet HMRC’s self assessment criteria for a particular tax year, you will need to file a tax return. It is also important to understand your legal obligations relating to self assessment to avoid penalties and interest.

   The trading allowance is a tax exemption that means you can make up to £1,000 working for yourself each tax year without having to declare these earnings to HMRC. Working for yourself includes:

   • Self-employment – for example, as a sole trader, freelancer or independent contractor;
   • Casual work – for example, tutoring, pet sitting, gardening;
   • 'Side hustles' – including online content creation; and
   • Selling goods online with the intention of making a profit – in other words, buying or making items specifically to sell them on (NOT just having a clear out).

   If you do any of these activities – or a combination of them – and you make more than £1,000 in total during the tax year, you'll need to file a self-assessment tax return (even if you made less than £1,000 from each one separately). When filing, you can either use the trading allowance to reduce your income by £1,000, or claim your actual business expenses – whichever benefits you more.

   When do you start paying tax?

   In a nutshell

   • Everyone in the UK can earn a certain amount per year tax free (£12,570 for 2023/24)
   • You need to let HMRC know if you exceed this amount (assuming you aren’t on PAYE)
   • If you become self-employed or set up a business you need to let HMRC know within 3 months (there’s a £100 fine if you don’t)
   • Class 4 National Insurance Contributions (NICs) start at 8% on all income over £12,570 (raised by £3,000 in 2022), for the self employed this falls to just 6%.
   • From April 2022, NICs will increase by 1.25 percentage points as part of the new Health and Social Care Tax (This has now been scrapped)
   • Capital gains tax of 18% – 24% is payable on items worth more than £6,000, and over and above your £6,000 capital gains allowance ( this  allowance is now £3000) 
   • You can rent a room in your home tax free up to £7,500 per year
   • Additional income earned up to £3,000 can be taxed through PAYE
   • 2nd jobs will be automatically taxed at 20% (BR tax code)
   • There’s a new £1,000 trading allowance and £1,000 property allowanceintroduced in Autumn 2017 and applied retrospectively from 2017/18

   Selling goods

   Platforms covered: eBay, Etsy, Facebook Marketplace, Gumtree, Vinted and others.

   When it comes to selling things, what matters is whether you acted with the intention of making a profit. This intention is the main factor in determining whether you're considered to be running a business ('trading') – and therefore whether you have to declare your extra income.

   So really it comes down to what you sold and why:

   • If you made or bought items specifically to sell them on, this would likely be considered trading. If selling the goods has taken you over your £1,000 trading allowance for the tax year, you'll need to tell HMRC by filing a self-assessment tax return.

   • If you only sold unwanted items you already owned, it's usually not trading. In almost all cases, if you just flogged stuff you already had lying around, you don't need to tell HMRC or pay any tax on this.
     
     The one exception is if you sold a single item for £6,000 or more. Depending on what it was, you may need to tell HMRC and pay Capital Gains Tax (CGT). This may apply if you sold something that increased in value since you got it, such as jewellery, antiques and paintings.
     
     You can check whether you need to tell HMRC about the sale using its online tool. For more detailed info about CGT, see the LITRG's guide.

 People need to research for themselves, and if in doubt contact HMRC.

[wintersdawn1]

• If you are selling unwanted personal possessions such as old toys or clothes, this would not be classed as trading or miscellaneous income, and there is usually no tax to pay. In some circumstances there may be capital gains tax when selling valuable items such as jewellery, this is covered in our flowchart.

There is no new tax and selling unwanted personal items as a " private seller" is not subjected to the HMRC £1000 trading allowance, as there is no trading nor business activities, however they may be subject to Capital Gains Tax if of high value and a profit has been made.

@henley-theatre-services 

[vintique*violet]

In addition to my comment - please see ebay information on this as quoted...

Quote 

Do I have to share information with HMRC?

From January 2024, new UK digital sales reporting rules require digital platforms like eBay to share information with them. However, this reporting doesn’t change your tax obligations.

On eBay, this should only affect newly registered accounts in 2024, which will extend to all accounts in 2025.

eBay will only report if you pass certain yearly sales thresholds:

• If your total sales on eBay exceed €2000, or roughly £1740, after fees.
• If you complete 30 or more sales transactions on eBay.

In general, selling personal items is not taxed if they’re below £6,000 and you’re not selling as part of a business.

Unquote

The above is to clarify that the above is ebay " policy" adhering to the HMRC reporting... and not to be confused with the HMRC  £1000 TRADING ALLOWANCE  for trading /business. 

[vintique*violet]

https://www.gov.uk/check-additional-income-tax

Gov link for those who wish to check additional income. 

[vintique*violet]

Yes all of that is taken from my original posts - unsure what you are trying to say here or are you just highlighting the information to assist? @wintersdawn1 

[wintersdawn1]

Just to highlight the main parts relevant to private sellers.  

Thank you for posting, I have saved the parts about private seller selling and the part about ebay sharing info with HMRC for my own reference in case I forget and to also to refer to if someone posts something inaccurate or incorrect.

[vintique*violet]

Thank you, appreciate... as people are getting confused I think. 

Much info is on Gov site and on litrg dot org dot uk ( low incomes tax reform group) they have " worked" with HMRC to bring valuable information to those on low incomes...Very helpful a  number of years back when needing to assist someone whose "voice" was not being heard.

[alexis*27]

Nothing is changing.

All that is happening is that eBay has to pass your name and address to HMRC if you sell over £1600.

If you have sold more than £1600 HMRC will send you a letter.

Knowing HMRC, it'll likely be a template with some information to simply prompt you into filing a self assessment form *if you think you need to*.

They won't be asking what you've sold or anything in detail I highly suspect. They don't have the resources!

[vintique*violet]

Quote from eBay 

Do I have to share information with HMRC?

From January 2024, new UK digital sales reporting rules require digital platforms like eBay to share information with them. However, this reporting doesn’t change your tax obligations.

On eBay, this should only affect newly registered accounts in 2024, which will extend to all accounts in 2025.

eBay will only report if you pass certain yearly sales thresholds:

• If your total sales on eBay exceed €2000, or roughly £1740, after fees.
• If you complete 30 or more sales transactions on eBay.

In general, selling personal items is not taxed if they’re below £6,000 and you’re not selling as part of a business.

Unquote

The above quote ( from eBay on their site if you search " there is no side hustle tax") is to clarify ebays " policy" which is adhering to the HMRC online selling reporting ( £1750 and/or 30 items per annum) ... and not to be confused with the HMRC  £1000 TRADING ALLOWANCE  for trading /business. 

Self employed and self assessment are two different things, the criteria for such is specifically set out on the Gov website. 

Private sellers selling their own unwanted personal items are not legally bound to register as self employed as they are not running a business or considered trading, there is no limit of £1000,  that is the  HMRC trading allowance for those who are TRADING. Even eBay in their quote online on their site state...In general, selling personal items is not taxed if they’re below £6,000 and you’re not selling as part of a business.

This is because any item classed as an asset ie. a collection or part thereof ( sold to the same buyer) that may have increased in value over the years and reaches  £6000 or more could be subjected to Capital Gains Tax ( not forgetting the allowance on this also, currently £3000)  Further information/advice can be found on the Gov site  on whether or not there is a need to complete a self assessment. Anyone on P.A.Y.E. who is concerned that additional income may take them over their tax threshold can contact HMRC for clarification, like wise those who are self employed. ( Personal Tax allowance is £12570 per annum) 

[vintique*violet]

Much is changing...in my opinion,  It is to monitor and surveil particularly those on benefits or those running a business illegitimately... not just the "big fish" , under the guise of money laundering and new " legislations" ...so that everything is dealt with online to track your " monetary" ( and more)  incoming and outgoing etc ... everything is  data driven , data held, data sold, even supermarket loyalty cards... Everything will be  A.I Automated! 

Your online statement transactions show what is sold/earned etc, so yes  HMRC are privy to that information.

As an example... Since when did anyone care if your Granny paid a tenner to a helpful neighbour to mow their lawn?  How many times a year and total amount paid ? Oh dear that's been 30 times this year, you're over the threshold...etc etc ? Yet there are millions of "high end" launderers who go amiss... People need to think about the bigger picture here, the freedom of cash, anonymity, personal privacy, identity protection, third party interference  etc  and what it means. 

[henley-theatre-services]

Thanks for clearing that up a personal friend has had an account on hold with requests for proof of buying receipts and he has only sold personal items so of course we have looked into it and it states new rules from January 2025 as HMRC are trying to combat side hustles. I just have no idea how they determine who is selling stock and who is selling personal items.

[the-layer-laboratory]

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@henley-theatre-services wrote:

I just have no idea how they determine who is selling stock and who is selling personal items.

---

HMRC's 'badges of trade' are listed on gov.uk, linked to below:

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205

[dan-myers]

why are you assuming that private sellers that make over a grand arnt including it in their self assesment?