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. 

[btr.style]

Just to add with what's not already been mentioned. 

The 1k turnover allowance is basically a test the waters allowance. Say you start selling for profit and want to see if it's viable, you've got 1k turnover (not profits, just sales before any expenses such as cost of the item and postage) to test things, see how the sales go and if you can manage. 

It comes down to a bit of honesty regarding selling current possessions which make profit (such as selling an N64 console that cost £100 in 1998 and sold for £150 now). For HMRC the key is turnover. If you turn over a certain amount (nobody knows what amount) they'll possibly want to check to see you are indeed selling things you dont want anymore. Such flags or concern for them could be selling lots of games/clothes/records brand new in packaging, never used. 

Basically if you are selling unwanted goods, carry on as usual (6k+ turnover could mean capital gains tax). However, if you were buying and selling for profit and they found out, it would mean big trouble and penalties to pay.

[papso22]

Good post!  The key point is whether a member is 'trading'.  Selling unwanted personal possessions is not trading. 

[polkadot9292]

Thankyou . Say I bought a coin Set had it for a whole and decided to and it
sold for 500 but I purchased for £300 for example do u need to declare I
always end up purchasing something else for myself just like recycling abit
.

[btr.style]

No not at all. Prices of coins fluctuate. HMRC understand that (I've got several of the world cup 1990 coins, didn't cost much, worth something now). 

A) They work on automated systems with detecting turnover and when to flag someone for investigation. It's all down to you to make that choice. If you are selling off stuff you don't want anymore, fine, carry on as usual. Nothing to declare. 

B)  Alternatively if you are knowingly buying goods to sell for profit and total sales per year exceeds 1k, declare it. 

Either way HMRC can ask questions at any time for anyone. If A), no problem at all, co-operate with them and they'll say it's fine to carry on. If B) and nothing was declared when they make contact, then it's penalties. 

[*vyolla*]

---

@polkadot9292 wrote:
Thankyou . Say I bought a coin Set had it for a whole and decided to and it
sold for 500 but I purchased for £300 for example do u need to declare I
always end up purchasing something else for myself just like recycling abit
.

---

If you're talking about just the one coin set you don't have to declare that sale on a tax return. 

[magpiecorner1]

I was, it was in reply to a poster asking about selling his own coins.

Business coin dealers would come under income tax or corporation tax.  I'm not aware of any exemptions under those rules.  I do know that the VAT element is reverse charged, but I think that's the only anomaly.

[polkadot9292]

But I'm not a buissness though ? Never have been purely a single old male
who's collected coins for a very long time and due to the cost of living
and downsizing house I have been selling coins and not always getting more
than originally paid for some have been bought for me over the years. I
think the rules are stupid people are struggling to survive its not like my
sales can buy me a massive house or a car etc it goes on bills or I save
for my funeral when rhe time comes . Now you've got people making things
like hampers and selling lots of electric items knowing you get a profit
that I can understand but for me someone who fought for this country and
worked until I became too unwell too I think is disgusting. Yet the
government keeps raising gas and electricity and asking more and more from
us they begrudge someone a little extra to survive abit more comfortably

[papso22]

As a private seller selling off your unwanted personal possessions,  coins, you will not be affected by income tax.  

There is a lot of hysteria on this thread.  The tax rules have not changed, it is the reporting rules that have changed.  If your private ebay sales meant you had no income tax liability last year, you have none now.

[vinylscot]

Thank you @papso22 for that sensible post. There has not only been a lot of hysteria on this thread, there has also been some downright wrong information/advice. To be fair, much of the information available is quite confusing, if not downright contradictory. Unfortunately, that allows individuals to interpret in whichever way suits them most.

Your last paragraph is the best advice I have seen on this thread. 

[polkadot9292]

Thanks I was just looking on my invoices ebay give they already take vat
and there fees anyway

[Anonymous]

Hi, 

Just a quick question. The HMRC rules for selling goods on eBay etc... Does this apply for things I've sold during 2023 or is it as from 1st January 2024 onwards?

[Anonymous]

Is this new rule, from 1st January 2024 onwards only or would it apply for 2023 and I need to declare everything that I've done for 2023? 

[papso22]

The HMRC rules for selling on ebay, or anywhere else for that matter, have not changed for some years.  If you have been trading as a business (buying goods to sell), you should have been dealing with the tax position already. 

If you have not been declaring trading income in the past then you need to to let HMRC know. 

The new rule is about information being exchanged, not the tax consequences of sales. 

If you are trading as a business then you need an ebay business account.

[Anonymous]

Thank you for your response. I'm a private seller but I'm just really confused on the tax capital gains etc... 

[neil2gaff]

Why don't you have to declare watches or other Mechanical items? 

[papso22]

---

@Anonymous wrote:

Thank you for your response. I'm a private seller but I'm just really confused on the tax capital gains etc... 

---

Look on. gov.uk for information.   

[papso22]

---

@neil2gaff wrote:

Why don't you have to declare watches or other Mechanical items? 

---

Because they are exempted as 'possessions with a limited lifespan'. But not all watches are covered, a working Rolex for example would not be, but an antique fob watch would.

[neil2gaff]

Is there a list of watches anywhere that you can check against?

[tommystrezures]

https://www.gov.uk/capital-gains-tax-personal-possessions/limited-lifespan

Has all the details there.

[neil2gaff]

Yea thanks that's really limited info.....i believe i am good as they were all personal possessions and none of them were of over 6k in value......