Ebay asking for National Insurance Number - HMRC (please can someone help me)

[see-want-need-buy]

Hi everyone, I'm in such a state - to the point I'm shaking with anxiety. 

I got a message from Ebay asking for my National Insurance Number for HMRC because I have sold items that reached over £1740 - mine was £1770 for this year. 

The items I sold where my own items - some used, some new and some unwanted gifts. Nothing that I sold was sold for "profit" - it was sold because I cannot use/wear them and because I am ill and will not be able to use/wear them. 

My Ebay account is a Private Account, not a business account.

(1) Please can anyone tell me if I am in trouble now for selling these items?

(2) What happens after I give Ebay my National Insurance Number?

(3) When I give my National Insurance Number to Ebay, will I then be contacted by HMRC?

(4) Will HMRC look back at my selling history or just for this year for the items sold? 

I'm worried that I'm going to get into trouble or something bad will happen me. I'm sorry if this sounds OTT but I struggle with my mental health and my anxiety levels are really bad right now. 

[**peaseblossom**]

Don't worry, you are not in any sort of trouble for selling your items.    All online marketplaces in the UK are now required to report sales to HMRC.    It doesn't trigger anything automatically.

HMRC say:  “If you are just selling some unwanted items that have been laying around your home, such as the contents of a loft or garage, it is unlikely that you will have to pay tax.” 

There's some more info on here:

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

[see-want-need-buy]

Thank you so much for your reply  ❤️ I honestly am ready to be sick with nerves and all I can think of is getting into trouble. I have genuine reasons for selling my items and I can provide medical evidence to support this. 

May I ask what happens after I enter my National Insurance Number? Will both Ebay and HMRC contact me? 

[**peaseblossom**]

You may never hear from them.   I sent mine months ago and haven't heard a peep.

[see-want-need-buy]

Thank you with all my heart and I really mean that, thank you ❤️ Xx

[gjalp]

It will be fine. If you don’t give it to ebay, they will hold your money until you do. You don’t need to pay tax on personal items unless you sell something for £6k for one item/set and then capital gains may be due. You are unlikely to hear from HMRC but on the off chance you do, you just tell them its your personal stuff and you are not trading. Please don’t worry about it.

[**peaseblossom**]

That's OK.   You really have nothing to worry about.    There are people selling far more than you and nothing has happened.

[see-want-need-buy]

Thank you so much for taking the time to read and reply, I really do appreciate it. Xx

[dch2112011]

If your sales exceed the reporting threshold ebay will report your sales to HMRC - the Nat Ins no will be linked to your sales for HMRC - if this happens ebay will declare the information submitted to you.

HMRC will link all of your incomes using your NINo to ascertain your total income - ie bank interest, income, benefits, pensions, share  dividends,online sales etc. They are all being reported along with many more to HMRC.

This all sounds scary but if you have nothing to hide - you have absolutely no worries - 

selling personal items is not taxable - however selling personal items constantly rather than as a one off may attract attention - even if you have been trading you have a £1000 annual allowance on top of your personal allowance.

It all depends on your personal tax circumstances as to whether HMRC show even the slightest interest in your affairs  - so if the sales are genuine personal items as you declare they should not be an issue tax wise even if you are asked about them by HMRC

[thatsjustprime86]

Ebay will send your details to HMRC whether you give them the NIN or not.

HMRC could potentially contact you and look into your selling history, although probably they will get way more info sent to them than they can realisticlly look through.

If youre genuinely just seeling personal items not for profit you have nothing to worry about.

You seem to get gifted an awful lot of really expensive dyson hair dryers, perfume sets and designer clothes. lucky!

[jckl1957]

You won't be 'in trouble' but it is useful to know what information Ebay will supply to HMRC if you reach the threshold of 30 items sold or sales worth over roughly £1700.

Details are here:

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

Ebay will pass all the details they hold to HMRC even if you don't give Ebay your NI number.  HMRC will be able to match up your details to your NI number even if you choose not to hand it over to Ebay.

What HMRC will do with your information is so far unknown.

If they believe you may have a tax liability, they will probably start a process by sending you a nudge letter.

If everything you have sold is high end, brand new and pricey, they may ask for receipts for the goods you have sold.  If they then conclude that you have been buying items to sell for a profit, you may have a tax liability.

The best advice is to be open and honest. I would start by giving your NI number to Ebay.

[selective_distribution]

Please do not worry......the Tax man is NOT the manifestation of the Devil that some would believe. Due to the new regulations ALL companies that provide you with a means of selling must report sales over a certain (very low in my opinion) level. This has meant that HMRC has been inundated with millions of new cases to investigate, and very few staff to process all these cases. In the event that you receive the dreaded brown envelope through the letterbox all it will be is asking you to fill in some information on your yearly earnings for tax purposes, and we all have to pay tax. They are not taking you to prison, they are not taking you to court, they are not sending Bailiffs to take all your worldly possessions. They may send you a nominal demand for a small payment. I have always found dealings with the Taxman to be most amenable. If you have any concerns consult an accountant, most will offer a half hour consultation free of charge. Hope this helps?