HMRC guidance on 'side hustles'

[papso22]

This might help sort out some of the confusion regarding paying tax on ebay sales. 

https://taxhelpforhustles.campaign.gov.uk/?&utm_source=hmrc_intranet&utm_medium=referral&utm_campaig...

https://taxhelpforhustles.campaign.gov.uk/im-buying-or-making-things-to-sell/

[moldosgifts]

HUSTLE noun

1. a dishonest way of making money

Verb

1. to try to persuade someone, especially to buy something, often illegally

So side hustle sounds so seedy

[papso22]

I agree, it's a terrible way to describe trading in addition to having a job, which I think is what it's meant to cover.  

[*maetrix*]

Hustle always reminds me of those confidence tricksters in that tv show starring Robert Vaughn & Marc Warren..not great wording,you need to come up with a friendlier/cuddlier phrase..do try harder.

[*maetrix*]

So if we're selling "used/unwanted/second hand" stuff we're allowed up to £6000 without having to inform hmrc...?

Is that correct?

[jonatjonatjonat]

It isn't a term ebay have invented though - its a commonly used phrase. It appears it was first used in the 1950s within African American news publications and at that time referred to both legitimate jobs and scams.

Like many terms, its been picked up by a new generation and used more commonly. It is used fairly frequently online to define a means of making money in addition to a 9-5 job.

I don't think you can blame ebay for language change over time!

[*maetrix*]

Fair enough.

As regards to the £6000 we're "allowed" on selling unwanted/used/second hand items before having to inform hmrc...is that correct?

[moldosgifts]

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@*maetrix* wrote:

Fair enough.

As regards to the £6000 we're "allowed" on selling unwanted/used/second hand items before having to inform hmrc...is that correct?

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The £6000 refers to a single sale of good or a job lot. 

[*maetrix*]

So why the difference between selling £6000 worth of stuff over the course of 12 months or in one "job lot"...?

There's always some sort of catch,isn't there...!

[moldosgifts]

because that is the law and how it is written it is not earnings that would be all your sales

EG you inherit your grannies gold ring and sell it for £5500 you will NOT need to tell HMRC.

But sell the exact same ring in combination with a necklace and the total sale is over £6000 then you will need to inform HMRC.

Capital gains is not always linked business activity if confused seek advice from an advisor.

[jonatjonatjonat]

Basically - because thats the rule HMRC came up with.

In general though, its likely at that level because the majority of things being sold at that amount would likely be things like antiques, jewellery, paintings etc. Or at least historically this is what it would have been.

Most of those items tend to appreciate in value is I imagine the logic.

[the-layer-laboratory]

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@*maetrix* wrote:

Fair enough.

As regards to the £6000 we're "allowed" on selling unwanted/used/second hand items before having to inform hmrc...is that correct?

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No, that is incorrect.

Personally owned items can be sold without any tax liability. The only exception is the £6000 capital gains threshold as explained a couple of posts above.

Items you have purchased with the intent of reselling, or items you have made/manufactured are subject to taxation. This activity would be classed as 'trading'. There is a £1000 trading allowance before having to notify HMRC.