Ebay & HMRC

[plhubbs]

Hello!

A couple of days ago I got a message on my eBay account that I need to provide my national insurance number because of my sales. After some research, apparently I have recently sold my 31st item this year, so I've triggered this check-up, apparently (I'm nowhere near the £1740 limit).

So I'm just wondering, what does this mean? I know eBay passes on some personal info to the HMRC, but will they see what I've been selling? Will they see my account and items for sale? Or do they check on my account and what I sell going forward? I don't mind them looking because my sales are all random bits and pieces (toys, films, ornaments, shoes, books etc...). I'm not a business, just a regular seller that just happens to have sold quite a lot of stuff this year.

Also, now I've triggered this with 31 items sold, what does that mean? Am I okay to continue? Will anything else happen if I reach the £1740 limit before the end of the year? (doubt I will). Everything resets after Dec 31st right? Then you start all over again? I am likely to get a tax bill for this? 

I'm guessing the HMRC must be getting a lot of eBay referrals since this was introduced last year? Because I'm willing to bet lots of regular sellers are reaching these limits (especially the 30 item limit. Can't that be raised? Very low). All this with the recent new issuing of funds rules (need feedback or tracking), and eBay is becoming less and less appealing 😕

[papso22]

There are already a number of threads on this topic on the discussion boards, I suggest you read those and then come back if anything isn't clear.

You can start with this one, but there are more.

https://community.ebay.co.uk/t5/Business-Seller-Board/Hmrc-reporting-January-2025/m-p/7732955#M32540...

[jonatjonatjonat]

The requirements to pass the data across (and the limits of 30 items were not decided by eBay but a cross country OECD.

you can see what eBay will supply to HMRC here

looking at your listings I would say as you are selling your own personal goods you should be ok. If HMRC were to look at it the only thing they might query is the Prime bottles as you are selling them as brand new. They are empty (so aren’t brand new anyway and shouldn’t be listed as such) but whether HMRC are even supplied that info I don’t even know.

the £1,740 isn’t a limit, you can continue selling provided you give your NI number

[plhubbs]

Yeah, all my items are just random things that I'm selling cos I don't want them or need them anymore.

The PRIME bottles are listed as new because that was the only option I was given when I listed them (for some reason). There wasn't an empty or used option. But that's why I made it clear they are empty, just for collectors basically. You think I should remove that item? 🤔

I thought there were 2 limits, 30 items and/or £1740? And you get the message triggering either? 🤔

[jonatjonatjonat]

I assume its because of the category you are listing in. Sports Supplements in Health & Beauty, for obvious reasons, won't allow used items to be sold.

The thing is - you aren't selling Sports Supplements, you are selling empty bottles. You'd probably need to list them in Collectables or Everything Else.

There are 2 limits yes - but its whichever you hit first. If you sell 30 items first and then sell more and sell £1,740 worth of items - there's no further requirements once you hit that £1,740 point.

[yorks_guy67]

I this morning have received this message and refuse to provide my National Insurance number for the simple reason I am not a business and I am selling

my personal hobby content. Checking with HMRC the limit for selling personal possessions is £6k a year. If eBay want to stop me selling because of this then fine just another nail in the eBay coffin after the biter protection fee addition. 

[jckl1957]

There are many threads about this.

If you read some of them, you will realise that Ebay are obliged to ask for this information if you reach either of the thresholds set .

Ebay will stop you from selling until you provide your NINO and may hold onto any payments for recent sales.

Even if you don't provide your NINO, they still have to pass your details on.

https://www.ebay.co.uk/help/account/regulatory/sales-reporting/uk-digital-sales-reporting?id=5454

[gjalp]

There is no £6k limit for selling personal possessions. The £6k is if one item or set/collection sells for this or more and then capital gains tax may occur. If your reach £6k selling a medley of personal items you can just continue as you were.

[thesmokingrunner]

A minor point @gjalp but the Capital Gains Tax (CGT) allowance was not only reduced from £6,000 to £3,000 with immediate effect by Rachel from Accounts in last year's budget on 30th October 2024 but also backdated to the start of the 24/25 Tax Year (06th April 2024).

Additionally the rate of CGT payable was increased with immediate effect on 30th October 2024 from 10% to 18% for Basic Rate taxpayers (Higher Rate taxpayers' CGT rates were increased from 20% to 24%) leading to the (for some) somewhat confusing scenario that the tax due is dependent on the date of tax liability within the 24/25 Tax Year; Basic Rate taxpayers would be liable for 10% CGT when applicable on eligible disposals between 06th April 2024 and 29th October 2024 and 18% CGT on eligible disposals between 30th October 2024 and 05th April 2025. Higher Rate taxpayers would accordingly be liable for the higher rates of CGT.

Just wanted to clear that up.

[jckl1957]

Off topic but ... I am laughing out loud and snorting (in a very unladylike way) at 'Rachel from Accounts'.

[gjalp]

The point I was making is that if you are selling your personal stuff, is you don’t need to stop selling when you reach a certain amount. I personally don’t keep up to date with CGT because it doesn’t affect me (due to having a lot of cheap personal items - if they were worth more, Id not be selling them on ebay)

[sml192]

---

@thesmokingrunner wrote:

A minor point @gjalp but the Capital Gains Tax (CGT) allowance was not only reduced from £6,000 to £3,000 with immediate effect by Rachel from Accounts in last year's budget on 30th October 2024 but also backdated to the start of the 24/25 Tax Year (06th April 2024).

---

That isn't correct.  Where Capital Gains Tax is concerned there are effectively 2 thresholds:

1.  The 'Chattel Exemption' which is currently £6,000 and is the amount at which an item or set is considered a chargeable asset;

2.  The 'Annual Exemption Amount' which is currently £3,000.

At the end of each year you need to add up the gains/losses (actual gain* = disposal proceeds less the original cost of acquiring the item/set and any allowable expenses) for each chargeable asset and then deduct the AEA to arrive at the taxable amount.

(Note chattels with disposable proceeds of £6,000 to £15,000 are subject to Marginal Relief).

The AEA was reduced from £6,000 to £3,000 with effect from the tax year 2024/25.  There was no back dating involved so I don't know where you are getting that from. 

[sml192]

---

@thesmokingrunner wrote:

Additionally the rate of CGT payable was increased with immediate effect on 30th October 2024 from 10% to 18% for Basic Rate taxpayers (Higher Rate taxpayers' CGT rates were increased from 20% to 24%) leading to the (for some) somewhat confusing scenario that the tax due is dependent on the date of tax liability within the 24/25 Tax Year; 

---

That is also incorrect.  The new rates were applicable from 6th April 2025.  They weren't raised with immediate effect. 

[thesmokingrunner]

@sml192  I am not, I can assure you, incorrect. I suggest you have a look at this:

www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

which includes the following :

30 October 2024 to 5 April 2025

The following Capital Gains Tax rates apply:

• 18% and 24% for individuals (not including carried interest gains)

• 18% and 28% for individuals for carried interest gains

• 24% for trustees

• 24% for personal representatives of someone who has died (not including carried interest gains)

• 28% for personal representatives of someone who has died for carried interest gains

• 10% for gains qualifying for Business Asset Disposal Relief and Investors’ Relief

6 April 2024 to 29 October 2024

The following Capital Gains Tax rates apply:

• 10% and 20% for individuals (not including residential property gains and carried interest gains)

• 18% and 24% for individuals for residential property gains

• 18% and 28% for individuals for carried interest gains

• 20% for trustees (not including residential property gains) 

HMRC got it wrong then?

You're welcome.

[thesmokingrunner]

---

@sml192 wrote:

---

The AEA was reduced from £6,000 to £3,000 with effect from the tax year 2024/25.  There was no back dating involved so I don't know where you are getting that from. 

---

Yes, the AEA was reduced from £6,000 to £3,000 with effect from tax year 24/25 but the announcement was made in the budget on 30th October 2024. So anyone who had disposed of an asset prior to that date which was not liable to CGT at the time of sale suddenly found themselves having to review their potential tax liability because both the AEA and the CGT rates changed on 30th October with effect from 06th April.

If that's not back dating I don't know what is.

[sml192]

---

@thesmokingrunner wrote:

@sml192  I am not, I can assure you, incorrect. I suggest you have a look at this:

www.gov.uk/guidance/capital-gains-tax-rates-and-allowances

---

Apologies, yes you are correct the changes to the GTC tax rates were effective from 30th October 2024 although not formally enacted until March 2025.

[sml192]

---

@thesmokingrunner wrote:

---

@sml192 wrote:

---

The AEA was reduced from £6,000 to £3,000 with effect from the tax year 2024/25.  There was no back dating involved so I don't know where you are getting that from. 

---

Yes, the AEA was reduced from £6,000 to £3,000 with effect from tax year 24/25 but the announcement was made in the budget on 30th October 2024. So anyone who had disposed of an asset prior to that date which was not liable to CGT at the time of sale suddenly found themselves having to review their potential tax liability because both the AEA and the CGT rates changed on 30th October with effect from 06th April.

If that's not back dating I don't know what is.

---

The change to the AEA from £6,000 to £3,000, with effect from the tax year 2024/25, was enacted in January 2023 by the 'Finance Act 2023', together with the change to the AEA from £12,300 to £6,000 for the tax year 2023/24, so it was definitely not a back dated change. 

[yorks_guy67]

Hi,

Thanks for that information.

They can by all means send my details but not my NI number for the simple reason I haven’t sold 30+ items and not reached anywhere near the £6k limit for selling personal possessions. They quote just under £1800 limit but that’s incorrect for personal possessions.

Like I’ve said already another nail in the coffin. EBay has wound me up now like so many others for a while. Makin a big deal of now it’s free to sell on eBay then stick an extra chunk on the purchaser. I appreciate this is HMRC however they need to get their figures right for personal sellers who aren’t a business

Regards
Ian

Sent from Outlook<> for iOS

[yorks_guy67]

Thanks for this. I did wonder whether it was one item or a collection. Either way though it’s not the £1774 limit eBay are quoting.

Just deleted my current live listings and will no longer sell on eBay therefore I don’t need to provide my NI number.

Thanks again
Ian

Sent from Outlook<> for iOS

[jonatjonatjonat]

You still haven’t got what the limits actually are referring to there.

the £1.740 figure is just sales on the marketplace. It doesn’t matter what it is, whether its personal possessions, the figure applies for when eBay need to report and ask for the NI.  The reason is, not all ‘private sellers’ are selling personal old possessions.