HMRC tax on £1000 sales

[Anonymous]

Does the £1000 p.a. sales figure include postage? I sell low value items & the postage is usually higher than the value of the item.  On £1000 sales i'd be lucky to make £200 profit.  Seems the end of Ebay for sellers like me.

[kempseykate]

For goodness sake ebay/khoros, get a grip:

"If I were to sell 30 plus *bleep* of wool "

Seriously? What else are we supposed to call wool when it is in a ball?

[vintagetoys2u]

Quite. The Bots are taking over. Wish I hadn't bothered now !!

| | Virus-free.www.avast.com |

[sml192]

---

@kempseykate wrote:

For goodness sake ebay/khoros, get a grip:

"If I were to sell 30 plus *bleep* of wool "

Seriously? What else are we supposed to call wool when it is in a ball?

---

You could call them by their proper name 'skeins' although I do agree that bleeping out the other word is rather OTT.  Unfortunately, autobots only look at the actual word and not the context. 

[kempseykate]

So what if I am talking about tennis *bleep*? Or golf *bleep*? etc etc 

[jkvinyl2]

I sell only items from my home including clothing, household items and vinyl records from the large collection I have accumalated over 60 years. I am now 76 and feel I have to sell this record collection before I die and they are all thrown on the tip. I have been doing this for a few years and still have a few thousand left. I definitely sell over £1000 a year and over 30 items a year. Surely it is unfair that the inland revenue should get 20% of the contents of my house. ps there is also a couple of pieces of furniture on there

[*vyolla*]

---

@jkvinyl2 wrote:

I sell only items from my home including clothing, household items and vinyl records from the large collection I have accumalated over 60 years. I am now 76 and feel I have to sell this record collection before I die and they are all thrown on the tip. I have been doing this for a few years and still have a few thousand left. I definitely sell over £1000 a year and over 30 items a year. Surely it is unfair that the inland revenue should get 20% of the contents of my house. ps there is also a couple of pieces of furniture on there

---

If you are selling off you own personal items then there should be no tax to pay.

eBay will pass on data to HMRC automatically if you're selling 30 or more items a year OR have total earnings over the equivalent of £1,740. eBay will automatically share this information with HMRC by 31 January 2025, but it doesn't mean to say that you'll have tax to pay. This is just what eBay is obliged to report.

[jkvinyl2]

Fingers crossed. But I will be gradually taking off most of the records I have on there for sale. ( all are buy it now or best offer). I suppose I could decide to no longer take best offers and that would cover the tax. All my collection is not on eBay but over 1000 are. I have enough at current pace of sales to last a few years but now need to cut my sales down by 80%. I’m most probably likely to die before they are all sold. Selling them to a dealer or collector is an option but from experience I reckon I would probably only get about 20% of their true value. I’m dreading getting a big bill for tax so I’m pulling my hair out at the moment.
Sent from my iPhone


Sent from my iPhone

[myriad*seller]

HMRC love to "outsource" work nowadays

There are many companies in Asia that this can be outsourced to...

[jofo_441]

Got to be honest I'm really worried about the tax thing. Me and the wife have been collecting stuff for years and we sell it to keep our heads above water or get something else with it. We have a 2 year old now and get a little bit of help with UC and really worried that January I'm going to get stung. Tempted to stop selling on ebay. I have contacted HMRC on X and they said because its my own stuff it would be fine but I'm not sure.

[*vyolla*]

---

@jofo_441 wrote:

Got to be honest I'm really worried about the tax thing. Me and the wife have been collecting stuff for years and we sell it to keep our heads above water or get something else with it. We have a 2 year old now and get a little bit of help with UC and really worried that January I'm going to get stung. Tempted to stop selling on ebay. I have contacted HMRC on X and they said because its my own stuff it would be fine but I'm not sure.

---

If you're selling off your own personal items you should be fine, there should be no tax to pay, and you've also asked HMRC who have confirmed this I would stop worrying. Worse case scenario I reckon is that you'll receive a 'nudge' letter asking you to confirm that the items you've sold are you own possessions, and you're not buying to re-sell. 

I have no idea at all if UC is impacted by money from eBay sales for your own personal items in any way, that's something you'd need to ask DWP. 

[jofo_441]

Yeah I have asked DWP and they said it has to be like £6,000 for an item which I don't own 😂

Yeah I worry about everything. Thanks man I appreciate it 😊

[*vyolla*]

It is worrying, what times we are living in now, eh?

[double_o_heaven]

As selling personal possessions isn't classed as "earnings", then they won't affect UC.  Only if savings build above £6,000 do you need to tell them.

[abercrombie-antiques-art-design]

"The new legislation kicked in on Jan 1st so ebay will report on an annual basis starting from that date."

Sorry to burst a bubble but the reporting does not start from that date. Every taxpayer has until the Jan 2025 to report & pay any tax owed for the year ending April 5th 2024. That is what eBay & all other platforms that pay people including Ebay, Vinted, Uber, Just eats, deliveroo & thousands of others will be sending to HMRC.  The data being sent is going to be checked against what people already said they earned in 2023-2024. People will already be 9 months into the next tax year before HMC even check. The worry is that people will think they can get a free pass until Jan 2025 & not realise they will owe thousands in Tax already.   

[sagr2519]

Unearned income (such as monthly payments from a pension) can affect UC more than the same amount of earned income. The UC rules are extremely complicated, and I doubt even DWP employees understand it completely.

[double_o_heaven]

Agreed - mostly because in a lot of cases you are allowed to "earn" a set amount before restrictions kick in.

But the selling of personal possessions is neither earned or unearned income, just to be clear to anyone else reading this.  And it isn't taxable income either.  Not that all tax rules apply to UC of course!

I also agree that I doubt anyone at the JC understands it totally though.  And possibly not even anyone who made the rules!

[shootfourthestars]

Only if selling more than 1k

[ett1954]

"Only if selling more than 1k" - It's not selling it's turnover.

Incidentally making to sell defines you as a business or trader irrespective of how much you sell.

[seanvideoman]

unfortuantley yes the £1000 figure in total includes everything the buyer has paid so if you sell a dvd for £8 and charge £2 on top for postage which is what it will actually cost you to send then the total will be £10 that your total sales will ammount to and that will be part of your yearly total going forward

your sales are calculated april 6th 2024 to april 5th 2025 so just make sure when you are high £900s you do not list anything until after 5th 2025 and then HMRC  will not be sent anything by ebay.

[papso22]

---

@seanvideoman wrote:

unfortuantley yes the £1000 figure in total includes everything the buyer has paid so if you sell a dvd for £8 and charge £2 on top for postage which is what it will actually cost you to send then the total will be £10 that your total sales will ammount to and that will be part of your yearly total going forward

your sales are calculated april 6th 2024 to april 5th 2025 so just make sure when you are high £900s you do not list anything until after 5th 2025 and then HMRC  will not be sent anything by ebay.

---

Ebay will send HMRC the details of any seller that breaches the annual (that's calander year) thresholds of approx £1,700 or 30 sales. 

It's not tax year based and it's not £1,000.