Got the dreaded letter from HMRC

Have received a letter from HMRC about online selling and money earned and they’ve asked me to contact them to disclose my earnings .  The thing is my whole family use my EBay account , daughter sells her unwanted clothes , my son his toys , I sell my own stuff BUT I do also sell items which Ive found cheap and know I can get abit more cash for.

My question is will HMRC differentiate between the two and how do I prove to them what was mine/my children’s in the first place  and what I had found and bought.  I suppose the split is 50/50 

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Re: Got the dreaded letter from HMRC

I agree with you, i sell for my family and i will not be bothered arguing the toss with the tax man over it, obviously i would tell them initially that that is what i do but if they decide i need to pay tax then so be it, grin and bear it.  Also i still have a lot of stuff of theirs (mostly car boot stuff) that i can use as their tax contribution...  I could ask them for anything they might 'owe' but as i spend so much on them anyway what is a bit more.!   Maybe they will not even bother with me but they have my nino and details so can happen.  Always be prepared for the worst...

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Re: Got the dreaded letter from HMRC

but the OP has said that her account is used by family members to sell and that is not personal trading!  I sell for my family (they have no access to my account i may add) and the question is where will HMRC draw the line at what they allow through as personal possessions.   Technically they are not my personal possessions but i am not gaining anything from them (more like losing as i give them the money and i end up paying for all the envelopes etc.   As a private seller i cannot claim anything like that as costs either.  It is what it is though and it is a case of wait and see.

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Re: Got the dreaded letter from HMRC

better by far for people to actually understand what may happen and be prepared for it than be like ostriches.  There are some people who should be scared and that would be those selling thousands of items as private sellers.   We all waste our lives in our own ways, not for others to decide whether it is or not!   

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Re: Got the dreaded letter from HMRC

Anyone know when we can expect to hear from HMRC ?  will it be April , the new tax year ?  

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Re: Got the dreaded letter from HMRC

Too many people posting on these threads now don't want honest responses.

 

They just want someone to tell them it'll all be OK. And they'll keep asking until someone does.

 

Pointless.

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Re: Got the dreaded letter from HMRC


@oldbeadbird11 wrote:

Anyone know when we can expect to hear from HMRC ?  will it be April , the new tax year ?  


Have you contacted them since receiving the letter? They will be able to advise you of where things go from here. No one here can say for sure what HMRC are going to do and when, we'd just be guessing.

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Re: Got the dreaded letter from HMRC

Just had Ebay asking for my NI code, not really sure what happens next, if HMRC send me a letter or I have to get in touch with them. I'm not an ostrich,just very naive,

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Re: Got the dreaded letter from HMRC

You may not hear from HMRC.

Ebay may ask you for your National Insurance Number then, if you are over either threshold (30 items or about £1700 for January to December 2024) they will send details of your sales to HMRC.

Somebody in this thread has advised you will need to contact Ebay to check what information has been sent.

When Ebay send your details to HMRC, they will email you and you can access exactly what they have sent from your own account here:

UK digital sales reporting | eBay.

"There are two ways to be fooled. One is to believe what isn't true; the other is to refuse to believe what is true.”
Søren Kierkegaard, Danish philosopher (1813 - 1855)
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Re: Got the dreaded letter from HMRC

Sorry, that was the wrong link.

This is the RIGHT link:

 

https://www.ebay.co.uk/mes/transaction-reports?q=tax

"There are two ways to be fooled. One is to believe what isn't true; the other is to refuse to believe what is true.”
Søren Kierkegaard, Danish philosopher (1813 - 1855)
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Re: Got the dreaded letter from HMRC


@kath3735_wxmjn wrote:

but the OP has said that her account is used by family members to sell and that is not personal trading!  I sell for my family (they have no access to my account i may add) and the question is where will HMRC draw the line at what they allow through as personal possessions.   Technically they are not my personal possessions but i am not gaining anything from them (more like losing as i give them the money and i end up paying for all the envelopes etc.   As a private seller i cannot claim anything like that as costs either.  It is what it is though and it is a case of wait and see.


I've never personally experienced an HMRC audit but I do know people who have, some of them for very good reasons. HMRC are not fools & they cannot be easily fooled. They know what they are looking for & they are very experienced at finding it. They also lack any kind of 'emotion', they care not for any kind of sob story anyone's imagination can conjure up, if anyone they investigate has evaded paying tax then they will go all the way & still sleep well at night.

 

Just recently we have been told by our MSM that as much as 75% of HMRC employee's are on or close to minimum wage. Possibly true, but if I were on minimum wage I'd like it to be paid as an employee in the comfy world of the civil service . . . ! Don't ever be fooled by what is most likely 'spin', the HMRC that is looking for the tax dodgers will be quite  a few pay grades above minimum wage.

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Re: Got the dreaded letter from HMRC

So you haven't had a letter from HMRC like the OP - just a request to add your NI number from ebay? In that case, all you need to do right now is add your NI number to your ebay account. Ebay will send seller's sales details to HMRC if the seller goes through the reporting threshold - they don't have a choice. If you don't add it, then ebay still send your info to HMRC, just without your number, but will also eventually restrict your selling until you add it. So you may as well just add it now.

 

As for whether you'll have to pay tax, nothing has changed in that regard. The same rules and thresholds apply as before. I haven't looked at your listings but I'm sure you know whether you are trading or not. If you're selling off your own possessions then there's no tax to pay. If you're selling items you bought or made to sell then you should have been declaring it if your annual turnover (not profit) reached £1,000. Whether any tax is due on your profits or not will depend on your own circumstances, such as other earnings using up your annual allowance for example.

 

Nothing has changed from this time last year, or the year before that, as to whether and what you should be declaring. All that has changed is that ebay now have to report your sales to HMRC if you pass the reporting thresholds.

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Re: Got the dreaded letter from HMRC

Hi

Would you be able to clarify how do I find the copy of the data ebay provided to HMRC ? I tried and I can't see anything related to this? Can you tell where and what to look for please? Thanks

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Re: Got the dreaded letter from HMRC

Your eBay data Subject access request

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Re: Got the dreaded letter from HMRC

If eBay has sent any data to HMRC you will be able to see the report using the following link.  You don't need to do a Subject access request. 

 

https://www.ebay.co.uk/mes/transaction-reports?q=tax

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Re: Got the dreaded letter from HMRC

Follow the link from above this post and you will see what I have copied and pasted below.  They have not yet sent my details to HMRC even though I gave them my NI Number 3 or 4 weeks ago.  It seems that they may not be passing info. on for existing accounts until January next year. 

Digital sales report
You receive a Digital sales report if your number of transactions or total transaction amount meet the reporting threshold in a calendar year. Find out more information on our Help page.
 
Tax year
Date generated
Annual report (PDF)
Detailed file (CSV)
 
You haven’t received a Digital sales report yet.

 

"There are two ways to be fooled. One is to believe what isn't true; the other is to refuse to believe what is true.”
Søren Kierkegaard, Danish philosopher (1813 - 1855)
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Re: Got the dreaded letter from HMRC

I haven't received a digital sales report and have not uploaded my NI number yet, but still got a letter from HMRC last month. Don't mind them sending my data across but would at least like to see it.. How far does this "data" go back I wonder?

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Re: Got the dreaded letter from HMRC

The data will cover last years sales 2024 , it jan to jan so 1 year, Ebay reporting.

HMRC can go back as far as 20 years if they think your up to no good. Very rare occurrence.

Just supply what HMRC want and the process should go smoothly,

Live long and prosper
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Re: Got the dreaded letter from HMRC

If you haven't been asked for your NI number yet then eBay won't have passed any data to HMRC.

 

For sellers who were registered before 1st January 2024 eBay is required to complete due diligence (obtaining and verifying Tax Identification Number, etc) by 31st December 2025 and then report only the sales for 2025 by 31st January 2026.   Sales for previous years will only be reported if specifically requested by HMRC.

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Re: Got the dreaded letter from HMRC


@second-time-around93 wrote:

I haven't received a digital sales report and have not uploaded my NI number yet, but still got a letter from HMRC last month. 


The two things are not related; HMRC has had access to all UK sellers' eBay sales via their Connect computer system for a number of years now. It sounds like you have received one of HMRC's recent one-to-many letters asking you to clarify your tax position. As long as you were only selling off your own personal possessions and were not trading (i.e. buying things with the intention of selling them) you will not have any tax liability. The important thing is you must respond to the letter.

Give me ambiguity or give me something else.
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Re: Got the dreaded letter from HMRC

The letter I received from HMRC requests all sales info up to April 2023, I've been selling on ebay for over 10 years and don't have that data. I like many others selling things we own, might make profit as a by product but don't do it with that in mind. If inflation is taken into consideration most people would of lost money, not made it.

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