Ebay and taxes for a private seller.

[addyeddy]

I read in the papers that there are changes afoot and anything over 1,000 a year in sales will have to be declared, yet I've gone onto the HMRC site, put in all relevant details, and it says I don't have to declare unless I've sold things worth over £6,000.

I'm only selling personal items that I no longer have a use for.

Can anyone clarify for me? Thanks. 

[kempseykate · Accepted solution]

Disregard the papers, and go by what HMRC say!

If you are only selling off your own items, you have no need to declare unless you are selling an item over £6,000 - I have no idea if this applies to something like cars, or just stuff like jewellery etc.

The £1,000 was a new thing brought in that just confused everyone, and was of little benefit to anyone. Basically, if you are doing Air B&B, or buying to sell on ebay, you can take £1,000 per year in turnover (NOT profit) without paying tax on it. Anything above that amount would be taxed at the normal rate.

[papso22]

That £6,000 sounds like the Capital Gains Tax threshold.

[addyeddy]

Thank you, much appreciated. 

[magpiecorner1]

£6000 is the minimum profit (gain) after a single item (or a set ie a pair of vases) the difference between the purchase and the selling price, after cost of sales (auction costs for instance) have been deducted.

£6000 is also the annual allowance for 2023-24 - a huge drop from previous years.   After that you pay 10% (basic rate taxpayer) or 20% (higher rate taxpayer) on the profit of anything with a minimum profit of £6000.

So you only declare items where you have made at least £6000 profit from one item or one set of items.  You also declare if you part own the item, in which case two or more allowances will be calculated.

Except you pay nothing if you sell a pair of shotguns, a watch or a car - pretty much anything mechanical.

Otherwise there is no need to declare money for personal possesions sold, the £1000 turnover is the limit for small businesses, anyone buying to sell or making to sell or providing labour or services, before you need to declare earnings.  So if began your business in March 2024 and your turnover was under £1000 to the end of March, no need to declare for that year (though you could if it is prudent to do so).  If you sell £500 a year of your knitting at the local market, no need to declare.

The £1000 turnover is not exempt from your normal taxable turnover or personal allowance - it is merely there if your taxable turnover doesn't exceed £1000 in one year.

[polkadot9292]

Hi so say I collect coins and notes for several years and due to cost of living I began to sell some a coin can sell up to £500 but it's my personal possessions do I need to declare this if I sell 2 coins for £500 for example this is not always the case I have made losses alot . But it's kept my finances ticking over and meant I can live and afford food etc would they class that as needing to pay tax . What I don't agree with is we've paid tax already on the purchases and we end up giving fees back to ebay and even they charge us tax 

[edwardian-dreams]

I read that all sellers earning over 2 euros a year will have their tails sent to the tax office , that is by law 

whether they get letters from tax office office asking to fill in forms I dunno

Pain in the but

[edwardian-dreams]

Sorry meant 2000 euros

[polkadot9292]

2 euro iv heard its a grand a year which is ridiculous they think a grand a
year is a profit that is hardly pitting food on the table . They need to go
aftar people who have shops pay taxes and then hide that they have a side
buissnes selling stock on ebay and not declaring it . Not the people
struggle to feed there family and sell belongings to make ends meet I can
literally make a grand a month on items I no longer want but there my
possessions iv paid tax on when I bought them

[rigged_out]

That's part of the rules of the international scheme that the UK have signed up to. Although the UK has a £1000 per year limit the scheme they have joined has limits of 2,000 euros and more than 30 sales before sending info to tax authorities.

[tommystrezures]

That is serious mis information considering in the UK we don't even use the Euro!!!

[papso22]

This thread has descended into complete and utter farce!

[**grandpa**]

It is Pantomime season after all.

[papso22]

I thought we might have skipped three months and gone straight to April Fool's day.

[tommystrezures]

Oh no it isn't..... 😂

Look behind you its the taxman 😂

[magpiecorner1]

Royal Mint coins, gold silver and platinum, are all exempt, regardless of how many you sell and how much profit you make.

Even if they aren't Royal Mint, although I'm not absolutely sure about them being totally exempt, you would need to check, if they are below the threshold, I mentioned £6000, I believe it is coming down to £3000 next tax year, it is profit that is taxable.

So selling two gold coins, or indeed two gold rings, for £1000 would not have to be declared.

Though I'd advise never sell for scrap, most decent dealers and collectors will pay more than the scrap price (I used to be a gold scrappie).

[papso22]

Presumably you are talking about capital gains tax and not income tax?

[polkadot9292]

What is capital gains I don't understand any of it how I see it I paid tax on the item when I bought it why should I need to again its not like I'm living like a millionaire from it 

[*vyolla*]

This is a good explanation of what Capital Gains tax is and the circumstances under which it would be payable:

https://www.gov.uk/capital-gains-tax

[sherbet-87]

I've checked this for myself and provided you are only selling personal possessions then you can sell upto £6,000 per tax year and you are not registered as an ebay business account there is no  need to complete a self assessment tax return.  

The £1,000 tax allowance would be if you made an income from I.e. making soap, so long as it remains under £1k.

Basically this wont affect most private sellers.